First time home buyers and seasoned home owners all have to take the same first step when looking for a purchase mortgage loan. They must get pre-qualified by a mortgage company before they go out looking at new homes. You should look into this even before you make initial contact with a real estate agent. The real estate agent will definitely want to see a pre-qualification from a mortgage company or lender before he or she takes you out to look at homes for sale. The reason for this is because the real estate agent wants to make sure he or she is not wasting their time by taking you out if you can not qualify for a home mortgage loan. You would be surprised how many people have absolutely no idea that they have bad credit or that there are blemishes on their credit reports that might keep them from getting a loan.
Mortgage Loan Pre-qualification Process
The pre-qualification process is very simple. You talk to a loan officer who will ask you various questions regarding past living history, employment history, income history, assets, down payment, and credit issues. The loan officer will then pull your credit to determine if you have the scores and trade lines to qualify for a new home purchase mortgage loan. He or she will then go over your payments with an ideal interest rate and loan type. Do not forget about your taxes and insurance! Even if you choose not to include these in your monthly payments, they will have to be paid at some point. If you do have the scores to qualify, they then can determine exactly what size loan you can qualify for using your income. Also, if you have been turned down by a bank for bad credit, it does not mean you will not qualify for a new home purchase mortgage loan. Talk to a mortgage broker. Mortgage brokers have access to many more home loan programs than most banks do, especially for those with less than perfect credit!
First time home buyers and 100% financing
We have many loan programs to help out first time buyers. These loan programs tend to be more lenient on guidelines to help first time home buyers get qualified. Also, there are several programs that offer better interest rates just for being a first time home buyer! A few years ago, it was a lot harder to qualify for a new home purchase mortgage loan because you needed a nice chunk of change to put down on the home. Although mortgage guidelines are getting a lot tougher these days, there are still many programs that offer 100% financing or even up to 106% financing so you do not have to come out of your own pocket for closing costs. That’s right; you can get into a new home instead of renting with absolutely no money out of your own pocket!
When you are ready to take that next step and start searching for a new home, please give us a call and we can get you pre-qualified right away. If you feel more comfortable discussing things in person rather than over the internet or phone, that can be arranged.
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