FIRST TIME BUYERS

A home is one of the single largest purchases you will make in your lifetime. It is important to do some homework to understand the home buying process.
Careful preparation will make a significant difference in your finances and give you an enjoyable home buying experience.

Today, you have a wide assortment of mortgage options to choose from. Paying attention to even the smallest factors in the way you structure your loan can save you literally thousands of dollars.

Here are some steps you should take before you buy a house.

Make a Wish List for Your New Home

Before you talk to a real estate professional it’s best to make a list of what you definitely need in a home, what you would like, and what you absolutely don’t want. It may seem unnecessary, but putting these things on paper will help you think past the basics and make sure you get the house you really want. You can start by listing the things that you like and dislike about where you are currently living.

This can help in a couple of ways. First, you won’t waste time evaluating homes that don’t meet your criteria. Secondly, you can prioritize what is most important to you. When making your wish list, remember that compromise may be inevitable. It is easy to add a fresh coat of paint or new carpet to your home but much more difficult and costly to add a second bathroom or make changes to the floor plan.

Evaluate Your Term Goals by Looking 5 to 15 and even to 30 Years Ahead

Ask yourself the following questions before you commit to a mortgage.

How long do you think you will own this home?

Is it possible for your income to change (up or down) in the near future?

What is the state of you current credit health?

It’s best to be very honest with yourself when answering these questions. If you discover too late that you can’t afford your mortgage, you’ll not only face the possibility of losing the roof over your head, but you could also damage your ability to purchase a home later.

Get a Copy of Your Credit Report and Review It for Errors

All mortgage lenders do a comprehensive financial investigation of applicants, including reviewing your credit reports. Your loan and your interest rates are determined in part by your credit scores. The FICO credit score reflects dozens of parameters in your financial history.

Score 700-850: Smooth Loan Process: Best Interest Rates
Score 550-699: Medium Risk; Higher Interest Rates
Score 300-549: Sorry, No Loans or Credit Cards

It’s wise to get a copy of your report and make sure it’s correct. If there are mistakes you must contact the agencies directly to correct them, which can take two to three months to resolve. If the report is accurate but shows past problems, be prepared to explain them to your loan officer.

Credit reports can be obtained from your mortgage officer or from three credit reporting agencies:

Equifax Information Services LLC
800-685-1111
www.equifax.com

Experian
800-EXPERIAN
www.experian.com

TransUnion LLC Consumer Disclosure Center
800-888-4213
www.transunion.com

Determine in Advance the Monthly Payment Amount You Prefer

Before discussing mortgage options with your lender, you should also assess what monthly dollar amount fits your budget comfortably.

By working with your mortgage officer you can determine the price range of homes you want to investigate based on a realistic monthly payment.

Get Pre-Approval for a Mortgage Before You Go Looking for a New Home.

A Pre-Approval letter confirms your ability to qualify for a loan based on your credit, financial, and employment information. It essentially allows you to know “how much house” you can afford and guarantees a mortgage loan to a specified amount.

In fact, many real estate professionals will not show homes to a buyer until you have obtained your Pre-approval letter.

You can obtain a written pre-approval letter from us. The process is so simple it can even be done over the telephone. You will need to have the following information handy:

- Job history
- Income
- Assets (Property, cars, bank accounts and investments)
- Liabilities (auto loans, installments loans, mortgages, credit-cards debt, household expenses and others)

Do not incur any new debt. Since mortgages are based on debt to income ratios (the amount you pay out monthly versus the amount you bring in) a newly acquired debt could be enough to throw the ratios off and make the mortgage unobtainable.

We will run a credit check to take a look at your credit status and you may have to supply additional documentation including paycheck stubs, bank account statements, tax returns, investment earnings reports, rental agreements, divorce decrees, proof of insurance, or other documents ...And once you get pre-approved we can take you shopping for your new home!