First-time homebuyers should apply for a loan before shopping for a home. Starting the home purchase process by becoming familiar with the home mortgage procedure is important. To save money, time, and energy, first-time homebuyers should begin the mortgage process first by contacting a local experienced lender. A skilled professional will provide first-time homebuyers with the necessary tools to make their home purchase process run smooth.
To increase the homebuyer's advantage the mortgage lender will educate the buyer in qualifying, and provide a pre-approval letter that will offer the borrower confidence when shopping for their new home. The benefit of the pre-approval letter is it provides the borrower the knowledge of how much house they can afford. This saves the buyer time and money from looking at homes they do not have the money or income to purchase. The letter also increases the homebuyer's bargaining power by proving to the seller the buyer is serious about their home and they can, in fact, purchase it.
In choosing a mortgage broker, the homebuyer needs to look for a lender that provides local mortgage experience. Homebuyers should know a mortgage broker does not lend their own money. They lend funds from other banking institutions. They have a wide variety of competitive mortgage programs and pricing to choose from. Mortgage brokers have the ability to shop multiple mortgage lenders, programs and rates.
Mortgage brokers should inform and educate homebuyers about the local home purchase programs available to them. Brokers should provide answers to which type of loan is best for the homebuyers needs, what costs are involved in the loan, to offering information about rate lock and prepayment penalties. Your mortgage lender should help the first-time homebuyer understand the difference between renting and homeownership, by providing information like rental increases, home equity and tax advantages.
It is essential first-time homebuyers are informed about the advantages and disadvantages unique to their situation. A mortgage should suit the individual, or family, just like the choice of a home should fit the homebuyer's needs and lifestyle.
Just how easy it is to become a first-time homebuyer depends on your situation and your lender. If your current financial status is common, or less than ideal, an experienced lender can help you understand the steps required to gain the path to homeownership.
To build our communities across the nation and enhance home ownership, our government provides affordable federal and state programs to first-time homebuyers who want to obtain home ownership. Just how easy it is to become a first-time homebuyer depends on your situation and your lender. If your current status is less than ideal, or common, an experienced lender can help you understand the steps required to gain the path to homeownership.
If you want to learn more about federal government home buying mortgage loan programs go to the following site: hud. gov/buying/index. cfm. For individual state government First-Time Homebuyer Programs and First-time homebuyer seminars go to: hud. gov/buying/localbuying. cfm.
Remember, always check with a local lender in your area before you house hunt and sign a purchase agreement.
Senior Mortgage Consultant
Serving the community 17 years.