For those who have never owned their own home
- Starting the home buying process can be a little overwhelming unless you take the right steps. Proper planning can prevent you from making mistakes that can cost you in time, aggravation, and most of all, money.
- Many home-buying novices go look at homes first and once they find one, then they talk to a lender. Or they take their income, decide what they want to spend on a payment and start looking. Both of these scenarios are wrong. Before you do anything else, you should always talk to your lender FIRST.
Meeting with your lender
- The first meeting with your lender will involve going over some basic numbers and deciding what is a good price range for you. This will involve pulling your credit of everyone who will be qualifying for the loan to see what they have to work with. This also gives them a better idea of what programs you can use, and how each one differs. Remember: it’s up to the lender to tell you what you qualify for.
- This is also the time that your lender can advice you if there are any issues that need attention. Often, there are errors on credit reports or old information that has not been updated. It is important to take care of these issues now so that they are not a problem later while the loan is being processed.
- If everything looks good or can be easily remedied, your lender can give you the go ahead to look for homes.
Home Shopping
- If you decide that you want to utilize the services of a real estate agent, your lender can refer you to those that they deem to be professional.
- And in many areas, buyer’s agents are paid by the seller so it will not cost you anything to use their knowledge and experience.
After you find your home
- It is essential that you notify your lender as soon as you have a contract on a home. They will need pertinent information so they can start the loan process.
- It is also imperative that you supply them with any documentation they need in a timely manner, as many aspects of the lending process are time sensitive.
Staying informed
- Your lender will stay in touch to alert you to things they will need, different stages that have to be taken care of and how the loan process is going.
- Right before the closing date they will supply you with an estimate of what funds you will need to close and a breakdown of what your expenses will be, as well as approximately how much your monthly payment will be.
Closing
- You will need your driver’s license and certified funds totaling what your lender as stated.
- When you leave the closing, you will have your copy of the paperwork and the keys to your new home.
