Part I in the series: First Time Home Buyers BootCamp
Ready-Set-GO....You're ready to buy your first home--What first?
Newlywed? Young Professional? Whomever you may be...you have been thinking about buying your first home. You've been hearing from CNN and Good Morning America how miraculously low the interest rates are, how incredibly great deals on homes are around every corner...
These facts are true. So, first things first. As much as you'd love to get right out there and visit some of those dream properties, you need to know what you can afford and where you stand, financially. This is probably the BIGGEST hurdle to get over in the home buying process.
You will want to contact a mortgage representative. In this volatile economic climate you will want to be absolutely sure that you are working with a seasoned professional. A good place to look would be any bank or credit union that you have done business over the years. If they do not handle mortgages, they should be able to point you in the right direction. You can also ask your trusted real estate professional for a recommendation. They are very aware of mortgage professionals who are very devoted to their clients as well as make the whole mortgage application process go smoothly from beginning to end.
When you have selected someone that you feel comfortable working with, you will want to have all your documentation ready. You will want to make sure you have access to your last one to two years tax returns as well as your most recent paystubs. Also, having all your debt (car and student loans, credit cards etc) calculated will be a big help. Your credit score will be reviewed and used along with something called your debt to income ratio. All the factors will be compiled together to get a full picture of whether you will be able to get that coveted pre-approval letter that you will need to include with your offer to purchase that first home. This will also determine the amount that you are going to be able to qualify for and how much money you will need to bring to the settlement table. These numbers will be a good faith estimate; of course final numbers will vary depending on your actual homes' price etc. If you find that you are not able to qualify for a mortgage at this time, your mortgage professional will be able to help to point you in the right direction in order to correct any issues that may be standing in your way. That pre-approval letter may only be a few short months away!
YOU'RE PRE-APPROVED! Once you have crossed this bridge, you are ready to sit down with your pen and paper and determine what are the must-haves and must-NOT-haves in your first home!
Next Friday:
Part II: Your First Showing-What AM I really looking for?
Comments(0)