Going about buying a new home if you are a first time home buyer
If you are a renter or are living with family and are a first time home buyer, the first step you need to consult with a mortgage lender and see what amount of mortgage loan you qualify for. Your mortgage lender will ask you to complete a 1003 mortgage application, usually done online. It is a 4 page application which asks you about your gross monthly income, your debts, your assets, and your liabilities. It will also ask you whether you had a bankruptcy, had a foreclosure, or have any outstanding judgments against you. Your mortgage lender will then run a credit check and analyze your complete mortgage application and submit your completed mortgage application as well as your credit report to Fannie Mae’s Automated Underwriting System. If you get an automated approval by Fannie Mae’s AUS, you will then be issued a pre-approval.
What is a pre-approval?
A pre-approval is a conditional approval for a mortgage loan that will lead to a formal mortgage commitment if whatever you stated on your mortgage application can be verified by the mortgage lender via two years tax returns, two years W-2’s, recent pay check stubs, 60 days of bank statements, and confirming your assets, debts, and liabilities through requested documentation. A pre-approval letter by the mortgage lender is your ticket as a first time home buyer to start shopping for your new home.
Hiring A Real Estate Agent
Once you are armed with a pre-approval letter from your mortgage lender, you can now go shopping for your new home. The next step is to start looking for home within the price range of your pre-approval. You can hire a realtor if you like immediately, or start doing your research via online and look at the home available and contact the listing agent. Once you like a home that you want to purchase, your next step is to place an offer on the home. Never offer to pay the asking price on a home unless it is a home that has multiple bidders and it is the home you really want. Start out low and the sellers will counteroffer. Once you and the seller agree on a purchase price, you and the sellers sign the real estate purchase contract along the proper addendums. You then submit your real estate purchase to your mortgage lender and he or she will then start processing and underwriting your mortgage loan application. As a first time home buyer, you will probably be overwhelmed and confused with the home buying process. Realtors normally understand the mentality of a first time home buyer so feel free to ask as many questions as possible. Mortgage lenders also understand how to deal with a first time home buyers so don’t hesitate to contact your mortgage lender throughout the mortgage processing and underwriting process if you have any questions.
Contact Gustan Cho Associates at www.gustancho.com if you are a first time home buyer for a quick pre-approval
If you are a first time home buyer, Gustan Cho specializes in first time home buyer mortgage loan programs. Gustan Cho specializes in helping borrowers from California, Indiana, Texas, Kentucky, Illinois and Florida who have had prior bankruptcies, foreclosures, open collections, tax liens, charge offs, judgments, and late payments get mortgage loan approvals. Contact Gustan Cho Associates at www.gustancho.com . Apply online by clicking on the APPLY NOW icon for an instant mortgage loan pre-approval.