Buying your first home can be a little overwhelming. Finding the right lender. Gathering the documents. Choosing the house. Picking the right financing. All this can make the process seem like too much to take on. Don't let the process scare you away from becoming a home owner. Many of the stories you hear are just that--stories. In most cases, the process is smooth and easy. Being prepared can take a lot of the fear out of the process.
Steps to Take
- Monitor your credit. There are lots of free services available that track your credit. Once you come in to get qualified, we will pull your credit. You don't want to be suprised by what we see.
- Gather all the necessary documents. You can find the list of these documents here.
- Decide what payment best fits your budget. What can you afford each month. Once we know what payment you are comfortable with, we can work backwards to find out what loan amount will fall in your "comfort level".
- Once we review your paystubs, tax returns and W-2s, we'll be able to give you a pre-approval letter that you can give to your realtor. This is NOT a final approval, just a letter that tells your realtor that we have reviewed the basic merits of your application--and that you meet the initial standards necessary for purchasing a home in stated price range.
What Program is best for you?
As a first time buyer, you likely don't know the difference between all the different types of availabel loans. I can help select the right program for your specific situation. Some quick program highlights are below:
- FHA--the required down payment is 3.5% of the purchase price. Seller can pay closings costs
- USDA--this is a 100% financing option, but the property must be eligible based on it's loacation outside a major metropolitan are. Your Realtor can help determine if the home is eligible.
- VA Loan--this is a 100% financing option for active duty and honarably discharged veterans.
- Conventional Loans--downpayments as low as 3% of the purchase price are available.
- Conventional Loans with No Monthly Mortgage Insurance--these loans are available for borrowers with very good credit. With as little as 5% down, you can qualify for this program.
Contact Tracy Flesch to discuss which program is best for you!
These materials are not from HUD or FHA and were not approved by HUD or a government agency.