First Time Homebuyer Information & Education

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Im going to buy property, who should I see first

Im going to buy property, who should I see first - So, you are going to buy a home, congratulations! Property is the best thing you can own but who should you see first? The first person you should see is your Loan Broker. The Loan Broker, through his Loan Officers can let you know how much of a house you can buy. If you go ahead and get pre-approved for a loan you will know exactly what you can afford to buy and then you can go shipping with the certitude that you have your money. Frequently you can also negotiate a better sales price since you already have the cash in hand.

Although many home buyers see a realtor before seeing a loan broker, this creates a lot of time wasted for both realtors and buyers. The buyer should see a loan broker or officer first to determine how much house he or she can afford. Once the buyer determines how much house he or she can buy, then the buyer can focus on the house within the right price range.


If you get financed first and shop second then your closing will go much smoother. Your loan broker will most likely have the name of a good appraiser for when its time to do your appraisal. The same goes for your other inspections.

Just about all experienced, first class Realtors will insist that you be pre-qualified by a mortgage professional before beginning to look for a home. In fact, if you are working with a Realtor who does not require that you be pre-qualified for a mortgage, that is a red flag. In that case you are probably working with an inexperienced and unqualified real estate agent who may end up wasting a great deal of your time.

I want to buy a home. Where do I start? - Many first-time home buyers ask themeselves the following question:
Where do I start? Buying a home can be a daunting task for first-time home buyers. The first step in purchasing a home should be to determine if they can afford a home. What many first-time home buyers do not realize is that there are many other costs to owning a home besides the monthly payment. They should speak with a family member or friend that owns a home and ask them what other costs they pay besides the monthly payment. This will help them get a good idea of all the costs involved with owning a home.

Since credit profile is an important underwriting criterium, it may be a good idea to obtain a copy of your credit report before the actual house hunting to see what your credit scores are. It will take time to correct any mistakes or credit blemishes on the credit report. Being prepared and proactive can save thousands of dollars by way of a lower interest rate.

When meeting with your loan officer to start the mortgage process you will be required to complete a mortgage application, along with providing supporting documentation that can include pay stubs, w-s2, tax returns, and bank statements.

If you have ever had a bankruptcy then I would strongly suggest that you have a copy of your bankruptcy papers and your discharge papers ready for your loan officer when you are getting ready to start the loan process. The more necessary information that you have at the beginning of the loan process the faster your mortgage transaction should go and the quicker you should be able to close on your home loan.

The application that the Loan officer is going to fill out with you gives the lender a bird's eye view of all your credit, income and asset history. The documenation that has to be provided is all the proof of what you put down on that paper. You must be able to show with documenation everything that you specified on your application. This would be your paystubs to prove income, your ID's to prove where you live, a Verification of Rent or Mortgage Statement to prove how long you have lived in a particular place.

It is always best to give more documentation than is necessary to your loan officer. Not only does it help with all the requirements that must be fufilled in order to get your loan done, it will even speed up the process.

If your meeting is over the phone, make the request to your loan officer that they email/fax the documents and details over to you beforehand so that you can both look at the numbers at the same time. It's much easier to have the numbers in front of you and discuss them than to try to remember all of the particulars as you discuss them over the phone.

It is a good idea to review your budget and determine how much of your income you can afford to spend on your mortgage payment. This will help your lender determine how much home you can afford to buy.

There's a lot of documentation to gather, and the task may seem daunting. But with the help of an experienced mortgage loan professional, the process is narrowed down to YOUR specific needs. This is usually determined through specific questions during your initial interview.

Many federal and state laws are in place to protect you as a consumer. These laws further require banks and mortgage brokers to disclose to you your rights. As proof of having done so, your loan officer will need you to sign various federal and state disclosures, which is then made a part of the mortgage loan application package.

Planning a budget before you begin looking to buy a home is a very important task. Many times people can qualify for mortgages that are much higher than what they can comfortably afford. By accepting a mortgage that is higher than what you would like to spend, you may have to change your lifestyle from what you are used to and you may end up living pay-check to pay-check instead of comfortably. Knowing the maximum that you want to spend on your monthly mortgage payment and the type of mortgage loan you want (ie: fixed vs. adjustable) can help you continue to live the way you are used to without having to sacrifice the luxuries you are accustomed to. When budgeting your money make sure you include estimates on what the property taxes and homeowners insurance payments will be on your new home as well. Your mortgage professional can help you work on your budget to make sure you buy a home that you are comfortable with and to make sure you have considered all expenses involved with a mortgage.

Also be sure to compare what bills you are currently responsible for versus what you will have to pay yourself once you buy a home. For example your water, cable, electric and garbage bills may be included in your monthly rent payments. When you buy a home these will be expenses above and beyond your mortgage payment. Of course if you are already making these payments yourself the shock will be minor.

Once you have met with a loan officer and have determined a purchase price with a comfortable monthly payment, its time to look for a Realtor. When talking to prospective agents you should pay closest attention to their experience and attitude. Is your agent trustworthy? Will they show you homes in your price range, or insist that you see larger or more expensive properties? Can they tell you about the local school system, your drive time to work, and where to get a good burger? Also look for the ABR designation. This means your agent is an Accredited Buyer's Representative and specializes in helping buyers.

How Do I Buy My First Home? - So youre considering buying your first home. This is a very exciting time that also produces a lot of stress, anxiety, and even embarrassment. That stress, anxiety, and embarrassment is almost always caused by the mortgage process.

You may be asking questions such as: How much can I afford? What if my credit score is terrible? What if they laugh at me?

Understand that, as your loan officer, I want to help you successfully buy a home. Also, understand that, no matter what your credit report looks like, Ive almost definitely seen worse. Ive probably helped someone with worse credit obtain a mortgage. And if you cant qualify right now, I can give you a plan on how and when you can qualify.

There are hundreds of mortgage programs by many different banks that cover almost any financial situation. Many of these programs are created just for first time home buyers. If you have been renting or even living at home with your parents, there is a loan program for you.

How can you buy your first home you ask? This is a very common question and luckily the addition of tons of new mortgage programs have helped increase the level of home-ownership to record numbers. There are many programs available that will allow you to not only buy a home without putting any money down for a down payment but they will allow you to not have to pay any money out of your pocket for closing costs as well. Buying a home without having to come up with any money out of your pocket opens the door to homeownership to many consumers. Consult a mortgage professional to find out how you can buy a home without putting any money down or without having to bring any money to closing for closing costs.

 

Information listed above is to be used for educational purposes only and is not guaranteed

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