Owning builds your personal equity. With rates at historic lows Interstate has programs for all. The many benefits of home ownership await you.
Equity - It's impossible to create equity in an apartment or any rental property. The only way is to own the property yourself.
Tax Deductible - Rental payments are not tax deductible. As a home owner interest paid on your mortgage payment may be tax deductible.*
Same Payment Year After Year - It's inevitable that your rent will increase when your lease is renewed. With a fixed-rate mortgage from Interstate, your principle & interest payments will never increase. No Surprises!
Deep Sense of Pride - Apartments will forever be a temporary place to call home. Home ownership provides a true sense of accomplishment and pride.
Numerous Tax Benefits - In addition to interest tax deductions, many may also be eligible to deduct closing costs. There may be additional deductions available and/or special tax credits for home improvements and numerous other incentives only available to home owners..
*Please consult your local tax professional or CPA.
Use the list below to ensure that you have everything you will need to start your loan application. Having the required documentation up front will allow for a smooth loan process, from application to closing.
- Copy of driver’s license or state issued photo ID
- Most recent month of pay stubs
- 2 years W-2 forms
- 2 years tax returns
- Business license and 2 years business tax returns (self employed borrowers)
- Two months most recent bank statements (all pages)
- Contract of sale and copy of down payment check
- Mortgage statement, Insurance Declaration Page and most recent tax statement for all properties owned
- Divorce decree/separation agreement (if applicable)
Step 1: Get Pre-Approved or Pre-Qualified By Interstate
The only way to seriously know how much of a home you can afford is to formally ask Interstate. Getting pre-approved from Interstate lets you know how much you can afford before you begin shopping for your home.
Information You Will Need:
Your Income: Stable income assures a lender you can make your monthly mortgage payment.
Your Debt: Add up auto payments, credit card payments, student loans, alimony, child support, and other debt.
Your Cash: Total assets, amount in checking and savings accounts, and other investments.
Step 2: Determine Your Monthly Mortgage Payment Including Escrow / Expenses
Escrow is a third party account used to retain funds including the property owner’s real estate taxes and hazard insurance premiums.
Step 3: Understand The Costs of Owing a Home
Research shows it cost's about one percent of the purchase price per year to maintain your new home. For a $300,000 home, you should budget approximately $3,000 per year or approximately $250 per month for maintenance. Condominiums and co-ops will have regular maintenance fees. You will also need to factor in utilities, gas, electric, water, sewage, cable, telephone, insurance, property tax, etc.
Step 4: Review Total Costs compared to Monthly Income
Deduct the total in Step 3 from your monthly gross income.
Step 5: Run The Numbers for Six Months
1. Establish up a new bank account.
2. Deduct your monthly rental payment from your Step 2 total.
3. Deposit the difference in these figures into the new bank account on the second day of each month.
4. After six months, evaluate how simple or difficult this new process turned out to be.
Step 6: Establish Future Plans and Prepare for the Unforeseen Circumstances
- What might you need for your new home - carpet, landscaping, new appliances, patio furniture?
- Do you have plans to purchase a new vehicle?
- Would you like to have any children?
- What if you lost your primary source of income?
1. Don’t apply for new credit in any amount
2. Don’t consolidate your debt to 1 or 2 credit cards
3. Don’t close any credit accounts
4. Don’t make any large deposits into your bank accounts without a paper trail
5. Don’t max out or overcharge existing credit cards
6. Do continue to make all loan and debt payments on time
7. Do maintain your current employment
8. Do increase the amount of your down payment
9. Do continue to make your rent and/or mortgage payments on time
10. Do contact your Interstate Loan Officer at any time – We are here to help!