FIRST TIME HOMEBUYERS...What You Need To Know

First Time Homebuyers are my niche...they are the lifeblood to my Twin Cities mortgage business.  I love working with them because I can be a coach, a nurturer and a great knowledge base to learn from.

I've been told that I am a great teacher.  And mortgages are what I know best!

First Time Homebuyers have many questions.  Home financing can be a sea of confusion.  "Where do we start?"  "What do we do first?"  "What is the process?"

When a First Time Homebuyer is beginning the homebuying process, these are the questions I get asked most often.

Here is a list of the most important things to do NOW to be prepared for pre-approval and getting that mortgage for your first home:

1. Is your credit good?  If you have concerns, call me and let's take a peek.  An action plan may be in order and I can help with correction, building new credit or re-establishing credit due to a "not-so-good" credit history.
2. If you have had any job gaps, be prepared to write a letter of explanation as to the reason for the gap.
3. If you have experienced credit issues in the last 12 months, be prepared to write a letter of explanation.
4. Get these documents in order:  2 years most recent W-2's; 30 days most recent paystubs; 2 months most recent bank statements (including retirement account statements); 2-3 years tax returns if you are self-employed.
5. Down Payment:  Where is your down payment coming from?  Your own funds?  If so, your bank statements (as noted above) will be sufficient documentation.  Gift money from parents?  If this is the case, tell Mom and Dad to hold tight.  Do not exchange any monies until we have talked.  There is a clear process of documenting gift funds.  I can help you do this the right way!
6. Pre-approval:  Do not start shopping for a home until you have been pre-approved for financing.  A seller will not give you the time of day if you put an offer on a home without being pre-approved.  A pre-approval is as if you are saying, "Mr. and Mrs. Seller, I am ready, willing and have the ability to finance the purchase of your home."
7. Find a great real estate agent to represent you.  As a buyer, you do not pay a dime for their service.  Use a Realtor.  You need and deserve representation.  Don't know any agents?  ASK ME!  I have been in the business many years and can refer the best of the best.

Not so bad, huh?  The mortgage process really can be stress-free and quite simple.  With a little organization and the help of a professional, you can be moving into that dream home faster than you think!

Your MN Mortgage Mom