First Steps for First Time Homebuyers
“I want to buy a house and have no idea where to start.”
The first step for most buyers is going to be a call or visit to a Loan Officer. You will need to have the financial part handled before starting to seriously view properties.
“Can I use my Bank? They already have all my money anyway.”
While many banks are equipped to successfully provide a mortgage, it is not uncommon for delays in closings because a the bank hasn’t completed the loan. I know of one case a large name bank ceased to offer the loan product promised to buyers who were already in contracts. Both the buyers and sellers in those transactions suffered.
“Will it cost anything to get pre-approved?”
Typically it will not cost you anything up front to get pre-approved. It is a good idea to ask the Loan Officer before moving forward. If a Loan Officer requires any kind of application fee up front – that is a red flag and cause to reconsider using that person/company.
“I probably can’t get a loan, so why should I bother a Loan Officer to get pre-approved?”
Your financial picture may not be as dire as you think. There are all kinds of assistance programs and loan products that Loan Officers know about and can match you with. I delayed buying my first property because I was convinced I wouldn’t qualify. I wish that I had called much sooner because I qualified.
“I’m positive that I won’t have any issues getting the loan. I’ll get approved later.”
Most sellers will require a pre-approval letter to consider your offer. Most Realtors will require you to have a pre-approval letter to begin seriously viewing properties. It is incredibly difficult for me to deliver the news to a buyer that they lost the house to another buyer… while waiting on a pre-approval letter.
“Okay! I’ve got the pre-approval letter. Now what?”
Now you find yourself an Realtor to represent you and show you properties.
Call me, let’s go find you a property.
You can call, text or email me if you have any questions about any of this information.
Here is the contact information for several great Loan Officers.
The Mortgage Group
Scott Drescher Highlands Residential Mortgage