How To Be a First Time Home Buyer
Sheryl LandrumLoanBiz Columnist
There are plenty of home
loans available for first time home buyers and being prepared when you apply
for a new home loan can make the mortgage process much easier. If you are a first
time home buyer looking for a home mortgage loan, what do you need to know and
what will you need when shopping for a new home mortgage?
Be a Smart Home Buyer:
Plan Ahead
First time home buyers will discover that taking out a
mortgage is a big responsibility; however, in order to minimize the stress in
qualifying for your first mortgage loan, follow these simple steps:
- Find a reputable lender or loan
officer to help you and get pre-qualified before shopping for your new
home. First time home buyers often don't start the home buying process
aware of how much of a home loan they can qualify for. When you
pre-qualify for your mortgage loan before buying your first home you can
be confident that you are in the right price range for your budget.
Pre-qualifying for the mortgage needed to purchase your new home can also
help you in negotiating with sellers when you make a home purchase offer.
- Talk to your lender about loan
programs for first time home buyers. Discussing loan programs while
pre-qualifying with a lender is always a smart move. While there are loan
programs for first time home buyers, often the traditional mortgage
products can offer competitive loan programs for better interest rates.
Talk to your lender and find out which programs might work best for you.
- First time home buyers should look at
their credit as well. Credit is still key when qualifying for a
mortgage and has a huge affect on the interest rate you are offered. Your
lender will run your credit report and discuss any issues on your credit
history when you pre-qualify for a new home loan. If your credit is less
than pristine, now is the time to work on it. Strategize with your lender
on what it will take and how long it will take to bring your credit scores
up so that you will qualify for a good mortgage when it is time to buy
your first house.
Remember, being a first time home buyer does not need to be
intimidating or overwhelming and it won't be if you are well prepared. If you
see a new home purchase in your future, ask for referrals and start working
with a licensed and reputable loan officer now to ensure you are in the best
position for buying a new home and getting a great home loan.
About the Author
Sheryl Landrum is a Senior Loan Officer with First Capital Mortgage in San Diego and Prudential Realty in Bonsall, California.
