Are you looking for some first time home buyer advice? Well, unfortunately, many look for advice after they have found the home they want and now find out they cannot qualify for the loan.
Perhaps you have been renting for a while and decided to buy a home. This is usually how the process begins.
Then you start noticing the for sale signs out there and start thinking about the type of home you want to buy. You may even making appointments to see some of them.
Unfortunately, that's not how you should begin this process. Let me share some tips with you on how to begin. For those of you who have already who have already found the house and have been denied, I'll share some tips on that at the bottom of the page.
My first piece of advice is to find a lender who will works well with the first time home buyer programs out there. Sometimes that's where the challenge comes in. Many loan officers prefer not to work with those who are buying a home for the first time.
Why is that? Those who are buying for the first time usually are green at the process and that makes it harder for the loan officer. He or she may have to work harder for you.
So avoid frustration, and follow this first piece of first time home buyer advice below.
Your first tip is to get pre-qualified for a mortgage. Not only does this help you know exactly how much money you can borrow and the interest rate, you will also find out if the loan officer you have selected is really going to work with you.
It usually doesn't cost a thing to get pre-qualified (I don't recommend lenders who charge for the applications, they may only be interested in the application fee and not in you.) You may have to pay for them to pull a credit report unless you have a current one they will use.
How does it help to get pre-qualified? Well, let me tell you story....a good friend's daughter decided she wanted to buy a house. She started looking and got very excited, then when she went through the pre-qualification process, she found that the amount she qualified for didn't get her much of a house. She was very discouraged and decided to wait and improve her credit and income so she could buy the kind of house she really wanted.
You can save yourself a lot of frustration by finding out how much you can spend up front. Doing this first can help you find those programs that will really help you before you start looking for your dream home.
Now here's the second piece of first time home buyer advice to help with the process.
Have all of the documents together that you would need if you were going to actually apply for the mortgage today. Like, a very recent copy of your credit report; pay stubs/proof of income; bank and asset holding statements; tax returns; and documentation of your usual recurring monthly expenses like your car payments, utilities, etc.
This will speed up the process. Don't try to hide anything, it will come out. I tell people to get ready to expose their underwear drawer! You'll review things you will feel uncomfortable with. Relax, you're asking to borrow a lot of money, that's why you have to reveal these things.
Now here's a benefit once you're pre-qualified, sellers don't have to wait for a couple of weeks to see if you'll be able to do business with them--in other words, they won't grow impatient and sell "your" home to someone else.
Another benefit with being pre-qualified for a loan amount, gives you strong price negotiating power with sellers. How? They know if they don't give you a fair deal you can always go elsewhere for a similar home. There is a lot of power in being pre-qualified for a home loan! So get your documents ready for this process.
Once you have this done, now you're read for the next piece of first time home buyer advice.
With all your documents in place (be sure to make copies), your ready to shop. You may be pre-qualified by one lender, but shop another. Why do I recommend this? That way you can get the best deal. Let the lenders compete for your business.
How do you do this? By comparing their Good Faith Estimates. They have to give you this document, now you can compare this with what other lenders offer.
Once you find the house you want, emotions come into play. That's a dangerous time. Let me tell you why. I had another friend whose daughter found what she felt was the best lender. She even had me review the Good Faith Estimates before she decided. She had an awesome deal.
Then, when came time to close, the deal changed. I recommended she not go with it. The loan officer did a bait and switch on her! Her emotions were involved, she wanted that house and was afraid she might lose it. So she accepted the changed deal against my advice. I encouraged her to find another lender. I figured by doing that, her present loan officer might go back to the original deal.
When emotions get involved, its easy to be taken advantage of. So by shopping, you have other options you can follow if for some reason the original deal changes.
My next piece of first time home buyer advice is for those who have already tried to get a loan and have been denied. Is all lost....read on to find out.
There are various reasons you may be denied a mortgage loan. Find out why! Take a look at the denial letter to see if they explain why.
You cannot fix anything if you don't know why. Was it your credit? Did you not have enough income? Did you have too many bills? What ever the reason, you need to find out.
Then, as my first time home buyer advice to you, is to go to this page to find out what to do!
Download this free guide to help you step by step. It's a small guide, but it can give you the basics.
Do you have more questions? Have a Question is a cool place to ask them. You can also see answers given to others to help you further. Go ahead...pick my brain!
Go to House Buyer Solutions Home Page.
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Nov 01, 17 03:23 PM
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