The Buying Process--What Steps Do You Take? Step 1

Step 1-Finding The Right Lender

You have considered buying a home, but you are not sure how to get started. You have looked some online and maybe you have gone to a few open houses.

The first step is often the one that can be a little nerve racking for some, and not the most fun. You need to talk to a lender.

Why do you need to do this up front? For one your credit score will impact what kind of loan you can get. It is a good idea to have a lender pull your credit so you have an idea of what your credit score is. You may have some dings on your credit that are incorrect, and if you have the time you can often have erroneous dings removed from your credit report, but you will need some time to do this. Also how much money you have to put down will affect the type of loan you can get and the rate of the loan.

You will also want to find out if there are any special programs you might qualify for that can help you get into a home. For example there are special programs available for first time home owners, or if you are a teacher, police officer or fireman. You also may have family that is willing to help chip in for the down payment, so you will want to talk to a lender about how you can use this money to your advantage.

It is very important to find out about your credit score, what kind of financing is available and how much are you comfortable spending. You may get approved for a certain dollar amount, but you need to look at the monthly costs including property taxes, insurance, etc. to make sure you have a payment you are comfortable with.

How can you find a lender?

Ask your friends and family. They may have worked with someone they were impressed with. You can also ask a Realtor. Realtors deal with many different lenders and often have a few resources they can pass along.

Once you have a chance to sit down and talk with a lender you should be ready to move on to the next step, narrowing your focus to begin your search. Look for my next blog for this information.

If you have any questions or are looking for a lender you can contact me at lcartolao@apr.com or 510.213.1139