First time home buyer? Here are the five things you need to know in order to make the process as smooth as possible.
Get Pre Qualified!
This process is the process most first time home buyers don’t realize can be extremely pain-free and easy. Loan officers help get all of your documents and information you need together to do a quick pre-qualification to see which programs you may qualify for and which route to take. The loan officer does all of the work in helping you get prepared to go home shopping! At the end of this process, you’ll know exactly what your home budget will be. If you were looking for a higher budget than what the loan officer comes back and tells you, tell them and they will guide you towards the process of whatever it will take to raise your prequalification amount.
A pre-qualification is like a blank check to begin your mortgage process. A mortgage is the loan you have with the bank to buy the home. A pre-qualification is the bank/lender telling you how much money they will give you to go house shopping with. During this process, the loan officer will have you fill out an application detailing information about your livelihood and employment. They will choose an amount based on this information to ensure you will be able to make the monthly mortgage payment.
Go Home Shopping!
This is the fun part. You will begin looking for homes that are on the market and choose the next hub for your life! This can be a short or a long process depending on what you’re looking for and how specific you wish to get on the details. You will want to have a realtor for this process. Normally, your loan officer might have some recommendations for good realtors int he area, but you are free to choose whomever you want to get a “showing” of the home.
A showing is what it’s called when a new home buyer goes in to the potentially purchased home to see what it’s like in real life. Realtors have access to set up these showings and a good realtor will begin to show you better and better homes that fit your needs and desires.
Closing
This is the final showdown and is also the location where you get the keys to your new home! A thorough review of all the documentation and payment requirement on the loan will be in front of you and you will have to sign several documents. It’s important to ask as many questions that you may have and that you understand all of the details perfectly so that no surprises come up. Part of the documentation will detail the monthly payments you will need to make and how long you will be making them in order to get the loan.
Many people come to closing including the realtor(s) involved and sometimes your loan officer. Once you’ve signed the documents and verified all of the information, you get the keys to the front door of your new home and are free to do with it as you wish! It’s YOUR home.