I want to buy my first home... what do I do first?

Question

I want to buy my first home, but Im not sure where to start. Do I go to bank first? Find a house first? How do you find out how much the bank will give you for a mortgage?

Answer 1

All banks just about offer the same products and loan programs with the different qualifications in each of their programs.

Your interest rate is based on your credit score and how well you have paid your consumer debt over time.

In order to find out the type of loan programs you are qualified for you will have to fill out a loan application,preferrably with a mortgage broker, which you can find one in your local telephone book.

He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will then run your credit report which will have your credit scores. These credit scores will determine your interest rate.

The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application

#1 One month of pay stubs for each person that will be on the mortgage.

#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

#3 Two years of federal income tax along with the W-2 that match.

Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home.

In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

Your mortgage broker will now order an appraisal to show proof of the property value.

The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

I this has been of some use to you, good luck

"FIGHT ON"

Answer 2

Star, the best place to start the process is to select a lender. Shop around for the best interest rate by calling several banks or mortgage companies with good reputations. Don't be afraid to ask around. For the initial interest rate and projected payment quotes do not allow them to pull a credit report on you (even if they tell you it is free) because too many inquiries cannot lower your credit score and result in your qualifying at a higher rate. . . which in turn will be reflected in a higher payment. Anyway, with that said, call around and get quotes based on credit information provided by you. Be prepared to tell the loan officer, honestly, any credit problems you have at the present time or for the past ten years. Also have handy a list of current installment loan and credit card accounts you have open and monthly payments and balances of each. This will help determine how much house you can afford. Simply put most lenders will determine how much they are willing to loan you after considering willingness to repay (credit history and score) and income verses income going out (debt ratio) to prequalify. The higher the credit score the more relaxed the banks are when looking at ratio. Also LTV, or loan to value will come into play later. Which just means how much of the total purchase price of a home do you wish to borrow. (As it applies to purchases. There are some great programs out there today for first time home buyers! And the rates are still very low! It is a great time to buy! I hope this helps you! Best wishes to you in finding your dream home!

Answer 3

Congrats on being ready to purchase your first home. And kudos on knowing you need to start by educating yourself on the process.

Before you do any of the things listed above, go to the HUD web site, www.hud.gov, and read everything they have on purchasing and owning your first home. HUD has done a great job of pulling together all the important information and making it easy to read. Once you have those basics in your head, you will be able to talk to lenders, realtors, etc. and know what to ask and understand what they are saying.

Do NOT start with a Realtor. Get your loan info squared away first, then talk to a Realtor. A Realtor is trying to sell you a house. The Realtor has an inherent conflict of interest - no money made unless you buy. Think about it, the person who gave you that advice is wanting you to trust the salesperson to tell you everything you need to know. C'mon! Educate yourself before you deal with these people. Put yourself in charge. Don't let them make you dependent upon them. That's when you can get ripped off. Learn what you need to know so that you can use a Realtor if necessary, not so the Realtor can manipulate you! Yes, many Realtors are honest, but don't rely upon someone else to tell you something. Learn it yourself!

And the Realtor is not a mortgage expert, but will tell you information anyway and try to get you to use their mortgage person. Talk to their mortgage person, but only after you have educated yourself and talked to another mortgage person about getting a loan. See if the Realtor's person can do better. The Realtor's job is to find you houses that meet your criteria, show you houses, get you pertinent information on houses that interest you, coordinate the inspections, and negotiate the contract on your behalf.

But it all hinges on you knowing what you're doing and talking about. The HUD web site is the best place to learn what you need to know. Trust me. I'm in the industry, but not in a sales position. Very back of the house here, kinda watching the industry from a neutral vantage point.

Oh, and when it comes time to actually purchase the home, most people under 30 no longer use agents. Check out CraigsList for homes for sale by owner in your area. You'll be amazed at the homes available, and you'll save about $18,000 on a $300,000 home by not using the Realtors.

Good luck.

Answer 4

First thing you need to do is go to the bank where you do most of your banking and find out how much they'll finance you for a loan on a house.
Then go to a mortgage company and find out if you can get a lower interest rate loan from another company. They'll ask you for all the same info that your bank asks for.
These are your first steps because you need to know what price you should be looking at before you start looking at houses.
Enjoy!

Answer 5

Go to a lender & get a pre aproval letter. Tell them how much you make and all of the other imfo they want & they will let you know how much of a house you can afford. Next, talk to a Real Estate agent. They will take care of all the paperwork & the rest of the things that need to be done. They will guide you through the entire process.Next, Get a lawyer to go over all the paperwork & contracts.Good Luck.If one bank turns you down then go try another & another. Don't get discouraged. Keep tryin diferent banks.I went to 5 banks before I found one that would give me a loan.Three of them laughed at me,one just said no & the last one said "Absolutely" Try" Country wide home loans" Also, try "lendingtree.com" on the computer.

Answer 6

First you should save some money for the escroe and closing costs. Then you want to check with a few mortgage company's so you can get pre-approved for a loan. With that pre-approval you'll know what your price range is. Also you might purchase some books on how to buy a home.

Answer 7

First you go to a real estate depending if the person is a broker they help you to get a lender. if the person is just a real estate then you need a broker usually the real estate would recommend you with a broker then they get you the right lender. Your credit score is very important which it play a big role because depending in your credit score they would base your rate and percentage in the mortgage. Also if you get your dream house you need insurance. i recommend when you sign the paper to include ,insurance and county tax on the property in the same mortgage. it would save you a lot of money and time.

Answer 8

go to bank and the will ask you your income and how much you can afford for payments. and then based on that they will do credit check and then hopfully give you a loan for xxx amount. and then you can go look at houses in your price range. you will have to put down a downpayment, so you should have money saved up before hand to put down. or at least half of it. you shouldnt use your money from you loan as a down payment cause you will have to pay that all back plus interest

but good luck! :)

Answer 9

You doing the first step and that is asking a lot of questions. Learn all you can, so you have a good idea of what is going on, and why price are so high and dropping.http://www.breakingbubble.com/index.htm
Best of all think for your self and do not let some one trying to make a buck off you decide or spend your money for you.

Answer 10

It depends on what form the asbestos is in. If it's just pressed asbestos tiles, like the siding on my house, it poses no risk. If it's fibrous insulation, then there is a serious potential for severe health problems. Hire a home inspector, and get his opinion. If it is dangerous, it might be cost-prohibitive to fix it. Good luck!