First-time home buyers want to know: "Where do we start?"

Real Estate Agent with David Tracy Real Estate License # 0577361

First time home buyersFirst-time home buyers are usually very excited about finding and purchasing their first home. The question I always get when I meet with a new buyer is, “Where do I start?”

The first thing buyers need to do is determine their purchasing power. They will need to know how much home they are qualified to buy, what monthly payment they can afford, and how much cash they will need to bring to the table at closing.

This will require that buyers meet with a lender to get a pre-qualification, or a pre-approval for a mortgage.

Generally, a lender will review a buyer’s credit, verify income, look at their debt, determine a debt-to-income ratio, and come up with an amount that the buyer would qualify to borrow.

This usually requires the buyer to submit bank statements, pay stubs, income tax returns and some other documents that present a picture of their financial fitness.

The lender can do a quick credit check and issue a pre-qualification based on information given verbally by the buyer.

Or, the lender can do a thorough review of the buyer’s documents and issue a pre-approval.

The pre-approval is much better than the pre-qualification because it means the lender has already verified the information required for the loan. The pre-qualification only means that the buyer looks qualified up front, but the lender still has more documents to review.

If you are ready to purchase your first home, you should go ahead and contact a lender to get a pre-approval. You can contact your bank or credit union for this, or you can ask your Realtor for recommendations for good local mortgage lenders.

You will need to have a letter from the lender showing you are pre-qualified or pre-approved for a loan before you can submit an offer on a home. A home seller is not likely to even consider your offer unless you can show that you are financially qualified to purchase the home.

The lender will also help you determine what monthly payment you can afford, and how much money you need to have saved for down payment and closing costs.

If you are ready to start looking for a home, contact Rose King and she will help you get started!


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Rose King 

Serving you in Friendswood, Pearland, Alvin, Manvel, Rosharon, League City, Webster, Clear Lake, South Belt, and the Houston Bay Area

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Comments (6)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I would say start with your passion and then educate yourself is the best advice for most of my clients.

Feb 05, 2021 09:52 PM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Great information, thanks for sharing.  I hope you have a great day.

Feb 06, 2021 02:00 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Buying a home is a big investment for people and the first step, which is how much can they afford is key especially if there are issues in their credit history that need to be addressed first.

Feb 06, 2021 04:48 AM
Sharon & Bruce Walter
Keller Williams Realty Lafayette, IN - Lafayette, IN
West Lafayette homes for sale

Rose, this is vital information any buyer needs to understand.  Before we go stopping to buy things we need cash or our credit cards or check book with us!  Why would shopping for a house be any different???

Feb 06, 2021 07:10 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Rose King always great to see one of your posts. Is that you in the photo with the client? Make it a great day!

Feb 06, 2021 07:40 AM
Roy Kelley
Retired - Gaithersburg, MD

I was looking for your current posts. I hope all is going well for you.

Happy New Year!

Dec 30, 2021 08:46 AM