First Time Home Buying Process Starts With Getting Pre-Approved

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Folks who are currently renting or are living with family and are a first time home buyer, the first step is to consult with a mortgage lender. The most important stage of  First Time Home Buying Process Starts With Getting Pre-Approved. Over 75% of our borrowers are folks who are either going through major stress in the mortgage process or have gotten last minute denials. The only reason for stressing during the mortgage process or a last minute mortgage loan denial is due to the fact that the loan officer did not properly qualify borrowers. First Time Home Buying Process Starts With Getting Pre-Approved and properly qualified. There is no reason why a pre-approved borrower should not close on their home loan. Not just close on their loan, but close on their loan on time. Getting properly qualified by a loan officer and see what mortgage loan amount a borrower qualifies for is the first step for first time home buying process.

First Time Home Buying Process Starts With Loan Application

  • Mortgage Loan Officer will ask borrowers to complete a 1003 mortgage application.
  • This can be done over the phone or online. 
  • It is a 4 page application which asks about gross monthly income, debts, your assets, and liabilities. 
  • It will also question mortgage loan applicants about prior bankruptcy, foreclosure, judgments, tax liens, and other important questions.
  • Loan officer will then run a credit check.
  • Completed mortgage application and credit report will be submitted to Automated Underwriting System. 
  • Automated approval by Fannie Mae and/or Freddie Mac AUS is an approve/eligible.

What Is A Pre-Approval

A pre-approval is issued after a loan officer reviews borrowers credit, income, asset, liabilities, credit report, credit scores, public records, and has an approve eligible per automated findings.

  • A pre-approval will lead to a formal mortgage loan commitment.  
  • Items stated on borrower’s mortgage application all will  be verified by the mortgage lender.
  • Documents such as two years tax returns, two years W-2’s, recent pay check stubs, 60 days of bank statements with be thoroughly reviewed.
  • Lenders will review and verify assets, debts, liabilities and do a national third party public records search. 
  • A pre-approval letter by the mortgage lender is the ticket for First Time Home Buying Process to start shopping for home.
  • There is no reason why a properly pre-approved borrower should not close on their loan.

Hiring A Real Estate Agent

Once armed with a pre-approval letter from a mortgage lender, borrowers can now go shopping for new home.

  • The next step is to start looking for home within the price range of the pre-approval.
  • Home Buyers can hire a realtor if immediately, or start doing research online and look at the home available and contact the listing agent.
  • Once decided on a home that to make purchase offer, the 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. 
  • Start out low and the sellers will counteroffer. 
  • Once buyers and seller agree on a purchase price, the executed real estate purchase contract along the proper addendum is submitted to the loan officer.
  • First Time Home Buying Process and mortgage process has now officially started
  • The loan officer will start processing and underwriting mortgage loan application. 
  • 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 mortgage lender throughout the processing and underwriting process with any questions.

Lender With No Overlays

The Gustan Cho Team are experts in helping first time home buyers and First Time Home Buying Process. Gustan Cho specializes in first time home buyer mortgage loan programs.

Home buyers who have had prior bankruptcies, foreclosures, open collections, tax liens, charge offs, judgments, and late payments can qualify for mortgage loans.  Contact Gustan Cho Associates at .  Apply online by clicking on the APPLY NOW icon to get started or call us at 1-800-900-8569 or email us at We are available 7 days a week, evenings, weekends, and holidays to answer any questions.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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