Overview and Advice On What 1st Time Homebuyers Need To Know

Mortgage and Lending with George Souto NMLS #65149 FHA, CHFA, VA Mortgages NMLS #65149

The Fall Market is here which means many First Time Homebuyers will be out looking to purchase their dream home before Winter sets in.  Purchasing a home can be overwhelming especially for First Time Homebuyers.  This is most likely the single largest expenditure they have ever made in their lives, and a process First Time Homebuyers are not familiar with.  At the beginning of this year I posted an in depth 1st Time Homebuyer Seminar Blog Series on the steps involved in purchasing a home and obtaining a mortgage.  However, I thought it might be beneficial to provide a condensed blog with a brief Overview and Advice On What 1st Time Homebuyers Need To Know in purchasing their first home.

There are several steps in the Home Buying Process, however, there are 3 major areas Homebuyers need to be aware of in obtaining a mortgage to purchase their first home.  For the purpose of this blog I am combining all 3 areas into this one blog, along with a brief description.  However, I will also provide links to past blogs with a more in depth explanation of each.  The 3 major areas couples obtaining their first mortgage need to be aware of early in their home purchase process are:

1.  Closing Costs

Most 1st Time Homebuyers are aware they will need a down payment in order to purchase a home, or the ability to borrow a down payment through programs available for 1st Time Homebuyers.  But many 1st Time Homebuyers are not aware of Closing Costs.  So it is very important for a Loan Originator to make them aware of what the Closing Costs will be, and how much money they will need.  Below is a list of the Closing Costs most common for all mortgages. 

  • Application Fee/Processing Fee
  • Appraisal Fee
  • Attorney Fee
  • Title Insurance Fee
  • Recording Fees
  • Daily Interest Charge
  • Homeowners Insurance
  • Escrows:
    • Taxes
    • Homeowners

There could also be other Closing Costs which are less common such as:

  • Points
  • Credit Report
  • Flood Certification
  • Funding Fees
  • Condo Questionnaire Fee
  • Re-inspection Fee

2.  List of Documents

Not all Loan Programs require the same documents, but there is a group of basic documents which are required for every Loan Program:

  • One month of paystubs, or if retired or disable
    • Pension Award Letter & proof of receipt
    • Permanent Disability Award Letter & proof of receipt
    • Social Security Yearly Award Letter
  • W2's or 1099's for the past two years
  • Bank statements 1-3 months depending on the Loan Program (all pages)

There are several more documents which may be needed depending on the Loan Program being applied for, and can be viewed by clicking the link above.  But these documents above are required with almost every Loan Program.  1st Time Homebuyers would be wise to gather these documents early on in their home purchase process, so they can proceed quickly in obtaining a mortgage once they have found their dream home.  It is also very important for 1st Time Homebuyers to provide additional documents quickly when an Underwriter or Processor asks for them.  Failure to provide documents quickly can result in their mortgage not being approved on time.

3.  Bank Deposits & Withdrawals

The third area, Bank Deposits & Withdrawals are a part of the initial documents listed above in #2.  Bank Statements are required with almost every loan, and they usually create a challenge for ALL Borrowers no matter how many times they have purchased a home before.

These days just about every Bank Deposit or Withdrawal needs to be documented or explained.  Most of the Bank Deposits and Withdrawals are easy to identify such as:

  • Direct Payroll Deposits
  • Income Tax Return Deposits
  • Bills Paid Online

But cash deposits or bills paid by check are sometimes hard to identify with out a copy of a check to prove where the money came from or who it was paid to.  So it is important for 1st Time Homebuyers to look through the Bank Statements they will submit and try to obtain the necessary supporting documentation.

This is a lengthy blog even though I just provided a brief overview of each of these 3 major areas homebuyers need to be aware of in obtaining a mortgage.  However, there is much more to each of these 3 major areas which you can read by following the links above and reading my 1st Time Homebuyer Seminar Blog Series.  I hope this brief Overview and Advice On What 1st Time Homebuyers Need To Know in purchasing their first home, is beneficial, however, I am always available to answer question or provide a further explanation for anyone who requires it.




 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Old Saybrook, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or souto@snet.net


Re-Blogged 5 times:

Re-Blogged By Re-Blogged At
  1. Lynn B. Friedman 10/29/2017 06:00 AM
  2. Debbie Reynolds 11/01/2017 05:00 AM
  3. Tony and Suzanne Marriott, Associate Brokers 11/05/2017 06:15 AM
  4. Gabe Sanders 11/07/2017 11:45 PM
  5. Gita Bantwal 11/08/2017 12:39 PM
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Corey Martin
Martin Presence Group - Ruston, LA
Real Estate and Management Solutions

Great advice for first time buyers! This is great information to inform first time buyers of what may lay ahead for them. Thanks for sharing!

Oct 29, 2017 11:33 AM #11
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

So glad that this was featured so that we all got to see it!  You always have such wonderful information to share with us! 

Oct 29, 2017 06:37 PM #12
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

George this is a great overview of what a first-time buyer will encounter during the process.  An informed buyer is usually a happier buyer.

Thanks for sharing.


Oct 29, 2017 10:39 PM #13
Kat Palmiotti
Grand Lux Realty, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

This is great advice for home buyers. Closing costs can be significant, and you're right, many buyers don't save for them.

Oct 30, 2017 03:05 AM #14
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 - New Lenox, IL
708.921.6331 - 40+ yrs experience

Excellent excellent post, George Souto ...

The more First-Time Homebuyers know and understand the process, the better it will go for them .. and the better the results they will reap.  Your post is a roadmap for them to find success in both regards.

Congrats on a well-deserved Feature,


Oct 30, 2017 09:01 AM #15
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

This is a comprehensive list for first-time buyers, George. I am happy to be able to share it.

Oct 30, 2017 08:12 PM #16
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

George,  I have first time home buyers right now and it has been awhile since I have worked with them and they are a real delight!  Yet, I have told them how to be prepared from the the lending side because you always guid us well!

Oct 31, 2017 04:21 AM #17
Jon Boyd
Home Buyer's Agent of Ann Arbor - Ann Arbor, MI
Ann Arbor Real Estate Buyers Agent

Great list. I always like to add that lenders collect the information to try to avoid risk, because the best way for them to predict a buyer's performance out into the future is to know what a buyer has done financially in the past. (It kind of makes the rest of it make sense to the buyers.)

Oct 31, 2017 06:17 AM #18
John Wiley
Right Move Real Estate Group- EXP Realty - Fort Myers, FL
Lee County, FL Real Estate GRI, SRES,GREEN,PSA

George, this is a well presented list for Buyers. It would be a great list to put into their hands. I believe they would find value and a reduction in anxiety in this list.


Oct 31, 2017 08:42 AM #19
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

This is a very important topic and you have hit on some important things that buyers need to be familiar with.  

Oct 31, 2017 08:08 PM #20
Gina Nugent
Donohue RE - Palm Beach, FL
Real Estate Agent - Palm Beach, FL

Timely information for my first-time hombuyers who are just starting to arrive in Florida for the season. Thank you.

Nov 01, 2017 06:28 AM #21
Woody Edwards
First Choice Realty, Inc - Chesterfield, VA
A Realtor® Who Answers His Phone!

A very well written list of what first-time home buyers need to know!

Nov 01, 2017 11:47 AM #22
Dan Derito
Success! Real Estate - Brockton, MA

Thanks for such a clear and concise list George. 

Nov 02, 2017 06:42 AM #23
Bill Dean
Haggerty Team St. Louis, Mo. - Fenton, MO
William Dean - Broker, Salesperson

Excellent post!   I'm printing it out to share with my clients.

Nov 03, 2017 10:42 AM #24
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

George Souto "...many 1st Time Homebuyers are not aware of Closing Costs.  So it is very important for a Loan Originator to make them aware of what the Closing Costs will be, and how much money they will need."

Right on target - and - re-blog!

Nov 05, 2017 06:15 AM #26
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Closing costs don't always occur to a first time buyer...the "assumption" is all that they need is the down payment.

Nov 08, 2017 05:11 AM #27
Patricia Feager
Selling Homes Changing Lives

George Souto - Congratulations on a great blog post that deserved feature recognition! You know your business well. Buyers, especially First Time Home Buyers should know you are known nation-wide by the best Real Estate Community and agents all across America. Many, like myself appreciate your information. You educate and keep us informed of what's current. George, you are truly trustworthy and credible. Plus you have an excellent reputation. 

Nov 09, 2017 10:07 PM #28
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

Good advice!  With first time buyers, I always suggest we take an hour or so and go over all the details they need to know--like the ones on your list. I also go over the contract and show them a sample inspection report. I find the more they know up front, the more confident they are when it comes time to write the offer.

Nov 13, 2017 11:46 AM #29
Maria Gilda Racelis
Home Buyers Realty, LLC-Manchester, Bolton. Vernon,Ellington - Manchester, CT
Home Ownership is w/in Reach. We Make it Happen!

Good Morning George,

I am liking your new look. So you switched company?

I see that you still specialize in CHFA. Good to know.


May 04, 2018 03:55 AM #30
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Maria Gilda Racelis yes I am now with William Raveis Mortgage, Bill McCue shut down the mortgage originating side of McCue Mortgage.  I have all the loan products I had at McCue Mortgage and more, and CHFA is still one of my specialties 

May 04, 2018 04:31 AM #31
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