First Time Home Buyer Mortgage Process
This BLOG On First Time Home Buyer Mortgage Process Was UPDATED On July 5, 2017
The first step for first time home buyer mortgage process is the pre-qualification and pre-approval step. The mortgage process does not have to be stressful and most loans can close in 30 days or less. Understanding first time home buyer mortgage process is key.
- The key with working with first time home buyers is educating them on how the home buying process works.
- From the time a home buyer signs the real estate purchase contract, to the mortgage application and approval process, and eventually to closing on the home.
- The Gustan Cho Team is available 7 days a week, after hours, weekends, and holidays to answer any questions or concerns borrowers may have.
- The mortgage industry is highly regulated and many mortgage guidelines may be confusing for first time home buyers.
- Mortgage Guidelines can often be confusing to mortgage and real estate professionals.
- Large percentage of mortgage loans in this country is regulated by Fannie Mae, Freddie Mac, FHA, VA, USDA, or other mortgage regulation agency.
- Loan Programs not regulated by government or Fannie/Freddie have their own lending guidelines by lenders.
Where Do You Begin As A First Time Home Buyer?
First time home buyers mortgage process starts with pre-approval. The pre-approval process is the most important stage of mortgage process. Most real estate transactions have both a sellers real estate and buyers real estate agent. Most home buyers need a mortgage so a loan officer is involved.
- The real estate agent and the loan officer will work together on home purchase mortgage to make it happen.
- There are many professional realtors who can help first time home buyers seek out the home of their dreams.
- Realtors will require you a pre approval letter from a loan officer.
Getting Qualified For Home Loan
- A pre approval letter is needed because it shows the seller that home buyer is qualified.
- Pre-Approval Letter shows that the buyers is qualified for a certain amount of mortgage loan.
- Pre-Approvals are not issued unless the loan officer has already ran a credit check, reviewed documents, and has an approve/eligible per Automated Underwriting System.
- Besides showing the maximum amount of mortgage loan that a borrower qualifies for, the pre-approval states the minimum down payment needed as well as the tentative mortgage rates and terms and loan program.
What’s Next for First Time Home Buyer?
Once home buyers is armed with a solid pre-approval letter, the home buying process starts:
- The real estate agent then knows what type of homes to look for home buyers.
- List prices on homes can be negotiated.
- Realtors will negotiate the purchase price and ask for seller concessions for closing costs.
It does not cost a penny to get qualified. Home buyers who need to get qualified for mortgage loan, please contact us at 1-800-900-8569 or email us at email@example.com.