First Time Home Buyer
There's no doubt that choosing a home is a big decision and you want to do it right.
As a first time home buyer, here's what actually happens. A home has been placed on the market for which the seller has established an asking price as well as other terms. In effect, this is an offer. At this point, you have three choices:
(1) accept the seller's offer and create a contract
(2) reject it and not make an offer
(3) suggest different terms and make a counter-offer.
If you choose this last option, the seller may accept, reject or make a counter-offer.
Finding a home is like the lottery. You have to be in it to win it. You have to be looking for a home to buy in order to find the home. If you don't look you'll never find one.
In today's mortgage market getting pre approved for a mortgage before you start looking for a home is a great idea.
As a first time home buyer you want to be be sure you will be approved for a mortgage before you find a home and then find out you can't get a mortgage.
Getting pre approved should be like applying for a mortgage. Your loan application should be submitted to Fannie Mae or Freddie Mac electronically. (Leaving out the address of the property.)
Once you have been approved electronically you will need to have a Uniform Residential Loan Application prepared and sent to you. After reviewing the application you will sign it and send it back to your lender.
What documentation will I need?
Once your application and documents have been received your application will be submitted to underwriting. Normally in a few days you will have your loan approval or the underwriter will ask for any documents needed to approve your loan.
By submitting your loan application directly to the lender and having the loan approved this will guarantee that you will not have a problem obtaining a mortgage.
Now all you need is to find your home!
If you found a home you want to buy or are thinking of buying a home follow the steps above and you will be on your way to buying your first home.
Once you have found a home and have signed a sales contract the loan process becomes real easy. You will submitted the sales contract and depending how long ago you were pre approved you will only need updated pay stubs and updated bank statements. Thats it!
To get pre approved simply fill out our application and one of our representatives will contact you.
If you have any questions or comments on First Time Home Buyer.
* FHA requirements new borrowers will now be required to have a minimum credit score of 580 to qualify for 3.5% down payment
* FHA loan requirements new borrowers with less than a 580 credit score will be required to put down at least 10%
FHA Credit Score
Requires a minimum credit score of 500 to buy a home or refinance
A collection is minor in nature usually does not need to be paid off as a condition for loan approval
Chapter 7 Bankruptcy at least two years must have elapsed since the discharge date
Foreclosure must have been resolved for at least 3 years
FHA guidelines requires three year past from the date of sale of the property
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