For many, the thought of buying a home is scary – it doesn’t have to be! The idea of trying to qualify for a mortgage, thinking about 30 years of payments and even trying to find a home you like in an area you want to be in can be scary!
The process doesn’t have to be scary or even difficult to do – the first step is to work with professionals that will help you through the process and explain everything to you. You will need money for a down payment – plan on needing between 3-5% for a down payment and also additional money for closing costs. You may be able to qualify for a first time homebuyer program that can help with down payment assistance. You may also be able to get the seller to help by paying your closing costs. If you are working with a realtor and loan officer that know the programs available to you, it can be a lot easier!
Freddie Mac suggests five steps to make the process easier:
- Find out your credit score and if you have any credit issues (your loan officer can help with that)
- Gather your documentation for your loan officer (income docs, bank statements, etc)
- Talk to a professional – you can get referrals for realtors and loan officers (Sharlene and I would love to help you, you can also find out who friends and family members have used)
- Consult with your loan officer – they will help you figure out what you can qualify for
- Get your preapproval from your loan officer so you know what you can buy
Once you have a mortgage approval, you are ready to look – contact your realtor and start shopping for homes!
The bottom line is do your research, reach out to professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner. The most important part of this is to stick to your budget! I always tell clients that they need to remember they are the ones making the house payment and they need to be comfortable with the payment! Have fun house hunting!
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
