Wednesday, August 5, 2015

So you're ready to buy your first home, now what?

Buying your fist home is exciting and somewhat overwhelming (yes that’s normal). Many first time home buyers will make the common mistake of house shopping first, which may result in their dream becoming a nightmare. Here are the steps you should take to make your home buying process as seamless as possible.

Figure out your budget.

Most lenders will say that you should spend no more than 25% to 28% of your monthly income on your mortgage payment. To help you figure out the maximum price you can afford on a home, provides a good online calculator

Check your credit score.

You should have a general idea of what your credit score is, and make sure everything is accurate on your credit report before talking to a Mortgage Broker or Bank. Although lenders can help you with this process, you should at least have a general idea.

Prepare your financial documents.

You should have the following documents ready before talking to your lender about a home loan. Although most loans require these documents, some niche loans may not require everything listed.
  • If you collect a paycheck, a W-2 for the past two years.
  • If you're self-employed, your 1099 or Profit & Loss statements.
  • Two years tax returns (most recent), your lender may ask for only the most recent one.
  • Recent paycheck stubs.
  • List of assets including statements. This includes all bank statements, mutual fund & brokerage statements, automobile & real estate license, and all other investments or assets.
  • A list of all your debts and the most recent statements. All credit cards, car & student loans, and other loans you make a monthly payment on.
  • Your canceled checks for rent or current home mortgage payments.

Schedule an appointment with a mortgage professional. 

There’s a never-ending debate on whether you should go to your bank for your home loan, or a mortgage broker. I say shop around and figure out your options. While some buyers feel safer going to their bank for a home loan, because a mortgage broker works with more than one lender they can shop around for you. They also have access to loan options that big banks do not offer, they are labeled on our website as Special Loan Programs (niche loans). Our mortgage professionals will prepare a pre-qualification letter and go over all cost details with you, which include but are not limited to:

Interest Rate
Lender Fees
Appraisal Fees
Underwriting Fees
Processing Fees
Closing Costs
Real Estate Taxes
Home Insurance

Find a Real Estate Agent.

You may have one already in mind, or have a recommendation from family or friends. If not we will be happy to recommend a high-quality Realtor for you. 

Find the perfect home.  

You should have a list of what you are looking for in a home and discuss it with your realtor, including must-have features and optional ones. Once you find the right home, and your offer is accepted, we will begin the loan process and keep you updated throughout the process. Our goal is to have you close on your new home within 30 days, however some niche loans may take an extra week or two because of underwriting.

Are you ready to speak with one of our mortgage professionals?

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