CONTACT HōM
c: 406.579.3583
o: 406.351.0427
f: 406.577.8321
erin@hom406.com
LIVE BOZEMAN STYLE
Financing
Reliable Financing Recommendations
Cherry Creek
Charlsey Clone
Real Estate Lender
406.599.0356
cclone@guildmortgage.net
NMLS: 1893603
Cherry Creek
BOK Financial
Alex Barcza
Mortgage Banker
970.319.1379
NMLS: 374949
BOK Financial Mortgage
275 Main Street
Ste. O-207
Edwards, CO 81632
Evergreen
Home Loans
Brett Evertz
Regional Manager
406.629.0132
bevertz@evergreenhomeloans.com
NMLS: 523473
Evergreen Home Loans
5 W. Mendenhall,
Suite 202
Bozeman, MT 59715
One Trust
Home Loans
Joe Post
Regional Manager
503.473.7105
jpost@onetrusthomeloans.com
NMLS: 117147
One Trust Home Loans
1716 W. Main,
Suite 8F
Bozeman, MT 59715
Financing 101
What you'll need to apply for a Home Loan
Federal regulations have changed (again!) and now enforce strict contract timelines. To ensure a smooth mortgage process & a reasonable closing timeline, verifying you have taken all necessary steps in the pre-approval process has become even more vital to your transaction. Providing all the information listed below at your first pre-approval meeting is critical. Anticipate spending an hour with your lender at the first meeting.
- Income: Copies of your last two years of Federal Income Tax Returns, complete with all pages and W-2's as well as your two most recent pay stubs.
- Assets: Your two (2) most recent months statements for all assets listed on your loan application, all pages are necessary (checking, savings, investments, 401K, IRA, etc...)
- Letter of explanation: for any NSF charges on bank statements.
- Gift Funds: If gift funds are used, a gift letter from the donor will be needed and a copy of the check or transfer of funds supplied to the underwriter. FHA loans require the last two months' bank statements from the donor, verifying that the donor can gift the funds.
- Property Info: If this is a new purchase, a complete copy of the Buy-Sell Agreement with both Buyer and Seller signatures. (If this is a refinance, the Tax Parcel Number or Legal Description, along with a current mortgage statement.)
- Additional Properties: A list of any properties to be retained, along with the property tax bill, annual insurance statement & mortgage statements (as applicable)
- Divorce: If you are divorced, a divorce decree will be needed. If you receive alimony and child support or are obligated to pay either, bring applicable documentation (assignment of debt, division of property, etc...)
First-Time Home Buyer Savings Account
Montana residents can save money in a special savings account to purchase a first home and save on Montana Income taxes.
What are the basics?
- Must be a first-time home buyer.
- Funds withdrawn from a first-time home buyer savings account are not subject to Montana income taxation if used for eligible costs for the purchase.
- Saving accounts can be established at any State or federally chartered bank, a savings and loan, a credit union, a trust company, a mutual fund company, or a brokerage firm.
- The maximum amount that can be used to reduce Montana taxable income is $3,000 annually for each taxpayer.
1031 Exchange
Might a 1031 Exchange be suitable for you to protect you from taxation?
What is an exchange?
- A tax deferred exchange is a method by which a taxpayer trades property held for investment or business purposes for replacement property resulting in a deferral of tax on the transaction. When you sell a business or investment property and have a gain, you generally have to pay tax on that gain. This capital gains tax varies depending upon your particular situation.
- 1031 Exchanges are often called “tax-free exchanges” as the transaction itself is not taxed. Section 1031 of the Internal Revenue Code provides an exemption from current recognition of realized gain, providing that the requirements of the IRC are carefully met. Using an exchange service will allow you to use more of your equity to acquire the property you desire by deferring capital gains tax. Learn More from the TFES website.
Financing Basics
If you are not buying your new home with your own capital (i.e., cash), a loan will be required. Make sure you select the right loan for you.
When applying for a loan, many factors should be considered. It is not simply a question of whether a loan can be obtained... for enough money, a loan will likely be possible.
Instead, the goal should be to get the right loan (and lender) for you. Remember, you will work closely with your lender for the next few months. It is imperative for you that they are an excellent fit for your real estate team.
Obtaining financing before searching for a home helps you determine a few key factors in your purchase. Does your loan type have any restrictions on location or property type? (Specifically, Rural Development and FHA Loans have restrictions on location and/or property type.)
I've included a snippet of my proprietary Bozeman HomeBuyers Guide here. This section includes a side-by-side comparison of different loan opportunities available today.
ABOUT HōM 406
HōM 406 aspires to be the most sought-after, quality partner for anyone engaging in a real estate transaction in Montana. Year after year, HōM 406 and its people distinguish themselves with innovation, excellence, professionalism, integrity, and gratitude. You'll see these core values reflected in everything we do, in every interaction with clients, customers, and the public. We serve to be greater every day! And we deliver quality as the best-in-class leader in our industry.
Come and experience our extraordinary expertise and advocacy!
CONTACT HōM 406
Mailing Address:
PO Box 10895
Bozeman, MT 59718
c: 406.579.3583o: 406.351.0427f: 406.577.8321erin@hom406.com
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All information contained herein is derived from sources deemed reliable, however, is not guaranteed by HōM 406, Managing Broker, Agents, or Sellers. The information included herein is subject to error, omissions, prior sales, price change, or withdrawal without notice and approval. We urge independent verification of each and every item submitted to the satisfaction of any prospective purchaser.
The HōM406® logo and brand is Federally trademarked, and its use is subject to written approval by Erin Mandeville Strand, Principal Broker.