Initially, you do not know where to start, you are not sure if you have what it takes to purchase a home, or how to go about it.
Start by selecting a seasoned real estate agent you feel comfortable with, that has the patience to educate you about the process, and willing to wait until you are ready. Your agent can provide you with educational material, and names of few loan officers as well as names of other needed professionals.
How much will these services cost you?
Usually, it is free, as long as when you purchase the property, you will use that agent or loan officer to represent you. If you are not satisfied with either, you have no obligation to pay anything, or to continue working with them.
Contacting a loan officer in the initial stage is very important. To borrow money, the bank evaluates the borrower as well as the property and makes the decision to lend you money or not accordingly. There are strict guidelines. Some basic requirements:
- You must be employed and have a secure job.
- Your credit score preferably at 720 or more
- You need to show the bank that you have the down payment and the closing cost
- You need to prove to the bank that you can afford making the monthly payment.
- In the event your cash funds are limited, your real estate agent can guide you as to the type of finance, such as FHA, that required low down payment, and also can negotiate on your behalf for a credit from the Seller at closing to cover your closing cost.
- Evaluate the unsolicited advice you receive from co-workers or friends that may be giving advice that is not factually true and will affect you negatively. This happens often, just be sure to verify with the professionals assisting you before jumping to conclusions.
- Your loan officer will give you a good faith estimate reflecting closing cost to you and the loan amount you will be able to borrow with your current income.
- If you want to borrow a higher mortgage amount, you may explore having family member co-sign the loan with you.
- The loan officer may recommend debt consolidation, or may inform you that the bank wants to see reserve in your account to cover couple months of mortgage payment for emergency.
- Just remember, whenever there is a challenge, there is a solution and remain positive and patient during the process.
Have a fun and very successful home shopping
Kay F. Osman, R, ABR, CRB, CRS, GRI, SRES
Principal Broker- http://kayosman.com
Del Osman Realty, Inc (808)523-6421
