So you want to buy a home and you know little or nothing about it…
First Thing to Do
The very first thing you want to do, is get with your banker or a local lender. I say local lender because you will have so many questions that it is better to be able to talk face to face with someone you know and can trust with your personal and private information.
Call them and make an appointment to sit down with them to go over the details of getting a loan. It is okay to be very open with them, tell them you are thinking about buying some real estate and you want to know the costs involved, how much money you will need to do this, and what their particular fees and rates are.
Ask them to explain how your debt to income can affect you getting a loan. Look at how different interest rates can vary the total amount you pay back. Understand how changing from a 30 year note to a 20 yr note can affect the pay off amount.
Discuss what it takes to get a loan – what papers you will need.
Wait for a Credit Score
I wouldn’t have them check your credit score just yet. I am told that when too may places check your credit it can actually lower your credit score. So, try not to do this until you are ready to jump in.
This person you are talking to can’t tell you for sure if you are qualified yet, but can give you insight into what would be stopping you from getting a loan, or getting a low rate loan.
What You’ll Find Out
At this point, you should know how much money you need for a down payment, if there are any programs out there that can help you secure a loan, and what papers you will need to give the bank so that they will give you the loan.
If the loan/bank person you talked to says you are ready, then it is time to start to shop for a Realtor.
If the loan/bank person said you need to pay off some bills or other charges, then get that done and get back with them when you have done this. You will sit down and go over all these details with them again. Don’t be discouraged, you will get into that home. Everyone who is helping you wants to make sure that you will succeed in getting a home and more importantly being able to stay in that home for a long time. Listen to their advise – they are there to help you.