You ought to know
So you want to buy a home?
You have decided that it is time.
You are ready to buy a home. This post is focused on First Time Home Buyers, but a lot of the information is useful to those that have bought a home in the past. If you own a home, there will factors regarding your current home that will have to be considered. Those factors may seem general in nature, but your situation is specific and can best be analyzed after a face to face meeting.
You have to speak to a lender. (If you are paying cash for the home, you can skip over Step One.)
There are several sources of mortgage loans. Some people have used the internet to find a lender. My advice is to deal with a lender that is located in your area. Your first conversation may be over the phone, but at some point you will have to sign the loan application. Out of town lenders will either fax your application to you, email the application or send it via an over night service. If you choose one of them, you will have to review the application in the comfort (?) of your home or office. If anything is not clear, you might be able to speak with someone in customer service and then again you might be told “People sign these everyday. They are standard forms. Don’t worry.”
As soon as someone uses these tactics, I would recomend that you stop what you are doing and call a local lender. I feel that statements that gently urge you to do something that you are not comfortable with are nothing more than a form of intimidation. You deserve answers. Loans for homes can begin at $100,000 and go up to several hundreds of thousands of dollars. You are not buying a toaster, you are buying a home with a kitchen where you will plug in the toaster.
You deserve to be comfortable.
What is the process?
When you call a lender, they will gather information about you. Be open and honest with the lender! Answer their questions completely. Once they have gathered the initial information, they will enter it into an underwriting system. Within a short period of time, they may call you back with a “soft” approval. You see, you can not get a “firm” approval until they have verified the information.
Here is the big thing to remember. You want to know how much house you can afford, not how much money they will lend you. Before you speak with the lender, you have to know how much money you can afford to pay each month for your new home. Understand that you also have to allow for taxes, insurance, utilities and any HOA/Condo fees that may be associated with your new home.
We deal with several lenders in the area. Some of them have grants available for First Time Buyers. We would be glad to go over this step with you. We can be reached at 301-509-5111 or via email at macarthurgroup@gmail.com.
