Although this is your first home purchase, we have successfully closed thousands of loans, many for first-time home buyers. We especially enjoy helping first-timers learn the process involved in taking this momentous step.
Prepare for the Process:
- Evaluate your financial situation. Examine your income and expenses to estimate a monthly house payment you feel comfortable with. Remember that property taxes and homeowners insurance will add to your monthly housing costs. Also factor in housing maintenance and repairs. I can help you estimate these items. The Mortgage Calculators on this website can help you estimate how much you can afford and how much you can borrow. It is recommended that your housing costs be no more than 28% of your income. We will finalize these figures.
- Check out your credit. Request your free annual credit report and look over it for any errors. Contact the credit reporting bureau with any corrections. The higher your credit score, the better. Good credit can result in lower interest rates and/or fees. We will evaluate your credit score and advise you on ways to raise it, if necessary.
- Determine how much money you will have available for your earnest money, down payment, closing costs and prepaids.
- Consider how long you plan on living in your new home. This is an important factor in determining what type of loan is best for you.
- Collect the documents you will need for loan approval. These include pay stubs, bank statements, savings and investment statements, W-2s, tax returns, and names and addresses of your landlords.
- Discuss the above items with us, and we will then give you a Preapproval Letter, which will state a specific sale price and loan amount that you will qualify for. Final approval happens during loan processing and underwriting.
- A preapproval letter shows home sellers and real estate agents that you are a serious buyer and can often give you an advantage is purchase negotiations.
As soon as you have a contract to purchase your new home, contact me. We will work with you through loan application and approval to give you an experience that is informative, as painless as possible, and suited to your personal situation. We look forward to talking to you soon!