So, after reading the tips on first time homebuyers from Part 1 through Part 3, you think it sounds pretty complicated. So much to focus on and so many things to remember. Not really. Remember, having trusted professionals surrounding you is half the battle. We'll take care of the rest, as long as you listen to us and follow our advice.
I have talked about needing the help of a loan officer. What you also need is the help of a trusted Real Estate agent. Again, asking for a referral from friends and family is a great place to start. You can also search the net and read up on a few realtors, as you are doing here on Active Rain.
Now, I know this might sound redundant, but you need to have some money saved. It doesn't matter if you want to put no money out of pocket and if you would get seller help to pay for your closing costs. Yes, there are 100% financing programs out there, also called No Money Down programs. Overall, you could possibly go to the closing table with no money out of pocket.
A few things to remember. In regards to most programs of this caliber, you still would need 2 months in reserves. This means that you would need 2 months of your mortgage payment in your bank, a 401-k plan, or any other type of savings plan.
Another thing to remember is that you will need money to move and unless you are buying a new construction home, you will always need some money to fix little things within your new home.
Summary : Take notes no matter who you talk to......
- Do your homework. But don't shop yourself right out of the market.
- Talk to someone that will take the time to explain things in detail. Watch such key words as "I promise" and "guarantee". Just because it's written on paper, doesn't mean it's always true.
- Even if the person whom you are speaking to sounds really nice & helpful, but they are hard to reach, this should be a red flag. If there are busy or not, keep this in mind. Between cell phones & e-mails, over 24 hours is a bit much to wait.
- Make sure that you get some type of pre-qualification letter. But know the difference between a Pre-Approval and a Pre-Qualification letter. And just be careful in regards to being pre-qualified or pre-approved. Please read : Are you really approved for that mortgage?
- You will also want a loan officer that will keep you posted in regards to certain market changes. Even if you are still shopping for a home.
- Know your credit and make sure you save what you can. Anything helps....
Lastly...... I can't STRESS this last part the most. Never be afraid to ask a question, no matter what. A question not asked is a dumb question. So, once you find a house, your loan officer should be taking your application. Try and get any paper work that the lender requests back to them in a timely manner. Then just wait for settlement. GOOD LUCK!!!
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Gold Star for this one Jeff! Great post and we gave you a 5! We're also bookmarking this one. Very well done my friend!
Lisa