In this first-time homebuyer FAQs guide, we will cover the common frequently asked questions by first-time homebuyers. Gustan Cho Associates get countless inquiries from first-time homebuyers about qualifying for a mortgage and the mortgage process. Most of our first-time homebuyer FAQs are similar questions. First-time homebuyers often have a lot of unanswered and/or conflicting answers on the home buying and mortgage process. Many people ready to start the mortgage loan application process are overwhelmed with emotions. Most first-time homebuyers do not know where to start. It is very understandable to have mixed emotions, feel confused, and worry because a home is most people’s largest purchase they will make in their lifetime. Gustan Cho Associates created the first-time homebuyer FAQs guide to help homebuyers with the home buying and mortgage process.

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Can I Contact a Realtor or Loan Officer If I Do Not Plan on Buying a House in The Near Future?

There are many moving parts to the home buying process. The internet is the first place most people go for information. However, not every informational article is credible. Many conflicting information homebuyers get are from lead generation websites which are not written by licensed experienced loan officers. Gustan Cho Associates is a licensed mortgage broker in 48 states with lending partnerships with over 170 wholesale mortgage lenders.

What Every First-Time Homebuyer Should Know

Every person who has a goal of buying a home should start understanding the basics of the home buying process. The home buying and mortgage process does not have to be stressful. It should be an exciting time buying your very own place called HOME. You should start saving early for your down payment and closing costs. Go over your finances and decide on how much home you can afford, and not how much home you can qualify for. Regularly check your credit report to make sure there are no errors. Talk to co-workers, family, and friends about their home buying process. Research and interview real estate agents and see which agent you feel most comfortable working with. Start learning the mortgage options available in today’s marketplace. Research areas you would like to call home and surrounding neighborhoods.

First-Time Homebuyer FAQs on Learning the Homebuying Process

We do not state information you want to hear or any information that is not factual. We state the facts. All of our blogs are fact-checked for accuracy. Our older blogs are updated periodically for any changes with regulations and guidelines as well as new mortgage options for our borrowers. To help guide first-time homebuyers through their home purchase, Gustan Cho Associates has created the first-time homebuyer FAQs guide to share with first-time homebuyers planning on buying a home and qualifying for a mortgage. In the following paragraphs, we will go over first-time homebuyer FAQs with answers to ease your mind during the home buying and mortgage process.

First-Time Homebuyer FAQs | Knowing When It’s Ready To Buy a House

The number one American Dream for Americans is still being able to own your own home. However, homeownership comes with responsibilities. As a renter, you can always decide not to renew your lease and move elsewhere. Not so much as a homeowner. It takes time for you to prepare on selling your home. The house needs to show well and be prepared to be listed for top dollar. One of the first signs you are ready to buy a house is if you are planning to stay awhile in an area and buy a home. If you are tired of worrying about the lease not getting renewed is a lot of stress. Not being able to have and/or needing approval and additional deposit for a pet is another benefit of owning your own home.

Buying Versus Renting a Home

If you have a secured job and have reserves for potential repairs provide the financial security required for homeowners. If you realize that renting a home is an expense while owning a home is an asset. As you pay your mortgage payment every month, part of the payment goes down to pay down your principal mortgage loan balance. As time passes, your home will appreciate in value. With the combination of paying down your principal loan balance and potential appreciation, owning your home is the only major investment where you utilize and use your investment. When you paid your loan balance in full, the home is free and clear and you own your home outrght. The best investment you can make. As a renter, you are not building any equity and the rent payment is an expense.

First-Time Homebuyer FAQs on How To Avoid Mistakes When Buying a Home

One of the most first-time homebuyer FAQs the team at Gustan Cho Associates often gets is how to avoid mistakes when making the largest investment in their life. Common homebuyer mistakes include buying too much house. This is why the question of HOW MUCH HOUSE CAN I AFFORD is more important than HOW MUCH HOUSE CAN I QUALIFY. Not everyone has the same monthly debts. Some people have more expenses than others. Mortgage lenders do not count personal and certain other expenses when calculating debt to income ratio. Educational expenses, utilities, auto expenses, and insurance, pet expenses, medical and senior care, after-school expenses, maintenance and repairs, and other expenses are not included in qualifying for a mortgage. Another top first-time homebuyer FAQs is not shopping for the best mortgage loan programs and not shopping for rates. Buying a home that is too small and/or a home that is too large is another home buying mistake homebuyers often make.