You’ve decided to make the leap and buy your first home. That’s great! Now that you’ve made your decision, you may be realizing that there’s a lot that goes into buying a house: things like interest rates, down payments and credit scores may be buzzing around in your head.
If you’re not sure where to start, don’t worry — that’s where we come in. We’ve compiled a list of need-to-know info. as you enter the next exciting step of your homebuying journey below
Get educated about the loan process.
Research. Research. Research. Although your loan expert will be at your side to answer questions, it’s best to begin the homebuying process with some understanding of what will happen. Learn what you can about your lender’s loan process and what you’ll need to bring to the table, document-wise. At PrimeLending, we make our process as simple and as streamlined as possible! It starts with a prequalification that helps you determine your potential loan amount, an appraisal and verification of the property you’ve selected, processing and underwriting of your loan and eventually closing on your property.
There are also probably a lot of terms you may hear, like, “escrow,” “market value” and “refinance,” that you’re not familiar with. Sure, you might not need to know all of these terms, but having a place that can easily define them is good to have on hand. That’s why we have a handy Mortgage Glossary.
Learn about your financial situation.
Preparing to buy a home is a big deal, so you’ll want to make sure you’re in the right financial spot to make what for most is the biggest purchase of your life. Before beginning the formal loan process, getting prequalified* is a must. During the prequalification process you’ll be asked about your credit score, your income, your current cash situation, assets and debt. Getting this research completed during your prequalification helps you:
- Know the loan amount you could qualify for, which can ultimately determine how much home you can afford.
- Save time by only reviewing homes in your price range.
- Discover any credit problems that can be resolved sooner rather than later.
- Confidently make an offer as soon as you find a home you like.
- Have your offer stand out compared to offers from a buyer who is not prequalified.
Getting prequalified with PrimeLending is free, it doesn’t affect your credit score and doesn’t require any additional documents other than your application. Knowing you’re financially ready to move forward helps you understand what lenders are looking for and identifies potential problem areas during the formal loan process.
Know your options.
At PrimeLending, we offer various loan types that will fit your specific needs. If you’re a first-time homebuyer, there are plenty of options to choose from, like an FHA loan (Federal Housing Administration). This home loan is backed by the government and offers lower down payment options, flexible income and credit requirements and low closing costs to help first-time homebuyers. We also offer down payment assistance programs that make homebuying a little more affordable for qualified borrowers. You can speak with your loan expert to find the right loan and program to fit your needs.
Although you’d like to be in your new home ASAP, buying a home is a process and there’s no guaranteed timeline. Remember to keep communication lines with your loan expert open and lean on their expertise to help answer any questions you might have. Speak with a loan officer today!
* A prequalification is not an approval of credit and does not signify that underwriting requirements have been met.
** Certain restrictions apply. Not available in all areas. Please contact your PrimeLending loan officer for more details.