So you have been weighing your options in regards to either renting or buying. It looks like you after thoughtful consideration and planning, that you want to buy a new home. You are now excited, just thinking about this daily. You finally will own your own home and be a proud homeowner.
You now need to speak to a loan officer, if you haven't already done so, to help you with the rest of the process and to qualify you. Word of Advice : Don't start to look at any homes until you have been fully qualified and know what you are getting yourself into. Some might disagree with this advice, but this is my professional opinion. No sense in putting the horse in front of the cart.
As you have been thinking this through, some have told you to just ask for a 30 year fixed rate. Maybe you don't have much money to work with. Maybe you have 30% to put down on the property. You actually know that this is a starter home and that you will probably only be in the house for 4 to 5 years, because you would also like to have another child. GOALS..... I have mentioned these before. A very good loan officer will ask you what your goals are prior to buying your first home. So much to think about, right? Nothing to worry about if in the hands of a good mortgage professional.
Okay, so now what, since there are many programs out there for you to choose from. As long as you can answer these few questions for the loan officer, he or she will be able to help you with your decision. Just giving their professional opinion, but backed with knowledge. Questions : (and your goals)
- What kind of payment would you be comfortable with? Not to exceed.. - Extremely Important - This should be the very first question. Again, just based on my professional opinion.
- How much is your current payment, if you have one.
- How much money do you have to work with? How much of this money do you want to use for closing.
- How long do you plan to be in the house? An estimate possibly?
- Do you have children? How many? Do you plan to have more?
- What kind of financial obligations do you have outside the norm, that don't show up on your credit report.
- You have less than perfect credit, so we need to work on things. A good loan officer can help you with this.
There are a few more to ask, but a lot of it has to do with where the conversation leads to.
You basically hold your future in your hands. Once deciding what loan program that you will go with, it's up to you to keep your financial obligations in check. Meaning, save money for those small emergencies. This will be talked about in my 5 part series for first time homebuyers.
Lastly. if for some reason, you ever find yourself in any trouble, please, NEVER hesitate to contact your loan officer or your current loan holder/servicer. Even if your loan was sold, go back to your loan officer to see if they can help or point the way. Banks & Lenders don't want to buy your house back. But once you get behind several months, it does become harder to work with you. Please just keep this in mind. NEVER BE AFRAID TO ASK FOR HELP. (And don't wait to do this!!!)
Good luck & my 5 Part series for First Time Home Buyers will be next...
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