First Time Home Buyers
Dreaming of owning your first home? Tired of shoveling out rent for a home or apartment that doesn’t feel like yours? Take heart, changing from renter to homeowner may be easier than you think. I’m here to help.
Where do you start?
- First of all, get pre-approved for a home mortgage with a reputable lender.
This is the first & most important step! Getting pre-approved is fast, easy and free. A written pre-approval includes a completed credit application and a certificate guaranteeing you a mortgage to a specified amount. With one in your pocket, you won’t waste time looking at homes you can’t afford! Instead, you can invest your time shopping for the home of your dreams – and in your price range.
- Examine your finances.
How much can you afford to spend? While a lender will tell you how much you qualify for, it’s up to you to figure how big a payment fits into your budget. What monthly dollar amount do you feel comfortable committing to? There are several different types of home loans available, and your lender will help you decide which type is best for you. A lender will run a credit report on you (it only takes a few minutes), but you’ll be ahead of the game if you acquire a copy first. You’ll know exactly what’s on it and be able to correct any inaccuracies.
- Shop Around.
When you’re ready to get a loan, explore your options. You can choose either a lender or a mortgage broker. A lender has money to lend and makes the final decision on your loan. Brokers are intermediaries who choose from many lenders.
- Apply for a loan.
Gather all the documents you’ll need to verify your loan application. Lenders will want to know your job tenure, employment stability, income, assets (property, cars, bank accounts and investments) and your liabilities (auto loans, mortgages, installment loans, credit-card debt, household expenses and others).
You’ll need to provide documents such as bank account statements and tax returns. Check with your lender for more information.
- Lock it down.
With interest rates changing daily, locking down your rate can prove a big money saver. A rate lock in writing guarantees you a certain rate and terms for a specified period of time. Your lock-in period should be long enough to allow for all processing time. Most lock periods range from 15 to 60 days. Make sure to check with your lender or broker about the average time it takes them to process a loan.
- Got your pre-qualification letter from a lender? Let’s go house-hunting!!!