Buying Your First Home Step by Step - Step 1 Getting Pre Qualified For a Mortgage

Get Pre-Qualified For a Home Mortgage Loan

Over the years before starting the guide I've had the opportunity to work with many home buyers who were buying for the first time. 90% of those home buyers do not approach the event in a way that is most beneficial to them.

Most of the calls I get from first time buyers have already looked for a home, found one they want, and ready to jump into the process head first.

This is fine except for the fact that they don't know if they can afford the home they've chosen, or if the home qualifies for financing that they need to be able to afford it. Usually they have built up their expectations and dreams around this particular home and many times they end up very disappointed and frustrated.

To avoid this problem the first time buyer should approach the home buying process in the correct steps.

Why you should get pre-qualified for a mortgage first

This is the first step in the home buying process. By being pre-qualified, the home buyer knows exactly how much home they can afford before they begin looking at homes. Not only will this first step help the buyer avoid being disappointed and save a lot of time spent looking at homes they can't afford. There are also other advantages to being pre-qualified for a mortgage before you begin your search for a home. 1. Being pre-qualified will cut the time it takes your lender to process your loan. This will enable you to to close sooner, which will often give you leverage in negotiating the price and save you a lot of money at the end of the day. 2. Many realtors only want to work with those who are pre-qualified. They don't want to spend their time looking for and showing homes to someone who may not even be able to buy. I myself can attest to the fact that working with a buyer who is pre-qualified for a mortgage is a huge motivator to work hard in finding the right home for a client.

Choosing A Lender

Choosing a lender is a step within the first step of buying your first home; and indeed an important step. Home mortgage lenders vary widely in the interest rates and terms they offer. So choosing the right one can save a ton of money. First of all, if you plan on going for an FHA or other government insured loan, you should make sure the lender you are considering is qualified to make this type of loan. By the way, it is advisable to seek a government insured loan as this type loan is normally much easier to qualify for and can get you a lower interest rate as well as a lower down payment.
If you plan to search for a lender online its advisable to use a site such as Lending Tree as lenders who compete for your business here will likely be pre-qualified by the sites owners to make FHA, VA or other government insured loans. Once you choose the lender, let them know that you want to become pre-qualified for a mortgage.

Buying a home is not as complicated as you may think. The first time home buyer needs only to follow the correct procedure step by step and in the correct order. Follow this first step and the steps I'll be telling you about in the coming days; and not only will your first time home buying experience be much easier and more pleasurable, but you'll save yourself some money as well.