First Time Homebuyer Guide - Part 2
by Pam Simpson
The Kudzu Vine
Part 2: How will we pay for it? (Finding the right lender and loan program for you)
How do you know what price home to be look for? Think you can't buy a home because you don't have a pile of money saved for a downpayment? Should you use that huge national on-line mortgage lender who advertises a low interest rate?
Selecting the right lender is one of the key pieces to the puzzle. If you have the wrong piece, the rest of the puzzle doesn't seem to fit together very well. The right lender can make all the difference in the world.
What's this leading up to? Well, in my experience, an on-line lender is big on promises but usually can't deliver and could very well cost you time, money, aggravation and your dream home.
The best lender is one who offers a variety of loan programs (FHA, VA, USDA, conventional) AND is knowledgeable about special localized programs (such as state downpayment assistance and grant programs).
Case in point: A couple of months ago, I was contacted by a first-time homebuyer who had been pre-qualified (on-line) through a large, national lender. This potential homebuyer was an excellent candidate for a special $28,000 grant to purchase a home in Desoto County MS. The big national lender they wanted to use had absolutely no knowledge about this grant. The national lender didn't even do USDA loans (a very well-used loan in our area). I don't know why the first-time homebuyer was so stuck on this lender - maybe it was the promise of a low interest rate. Unfortunately, this potential homebuyer missed out on a great opportunity because the lender they selected did not have the right piece of the puzzle.
So, how are you supposed to find the "right" lender? That part is easy. Ask a REALTOR®. Experienced real estate agents know the best lenders in your local area. When I refer someone to one of my preferred lenders, it is because I know the homebuyers needs and concerns will be taken care of and that the lender will live up to their promises.
You do have a Realtor®, right? If not, see Part 1.
This guide is designed to help first-time homebuyers better understand the overall process and steps in purchasing a home. There will be 6 parts in this series ranging from finding an agent and lender and the correct loan program for you to what to expect at closing. It is meant to be VERY elementary in order to help those buyers who are seeking guidance on where to start their quest for home ownership.
***If you live an area other than Northwest Mississippi, the process could be a little different.***
The best guide is your LOCAL REALTOR®.
The next part in this guide is Finding the Home.
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FOR BUYERS: Buying a Foreclosure, Finding a Home, Loan Info, Tax Credit, Interest Rates,
First Time Homebuyer Guide
FOR SELLERS: Pricing, Selling Tips
LOCAL COMMUNITY INFO: Tate County Community, Memphis Community, Southaven Community, Hernando Community
MARKET REPORTS: Foreclosure Report, Hernando MS Report, Olive Branch MS Report, Tate County MS Report
REALTOR STUFF: NAR, Real Estate and Media, Real Estate Agents
OTHER: Rural Life, Breast Cancer Awareness, Angel Food Ministries, Property Rights, Auctions
Disclaimer: All information provided by this author may be based on information collected from several sources and is believed accurate but not guaranteed.
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