What’s the First Step in the Home Buying Process?

How and when should you pick a lender when you plan on buying a home? 

The lender is one of the most critical parts of the home buying process. First of all, we want to make sure you qualify for a loan. A lender can help you identify any nicks or bruises on your credit report and offer suggestions to help improve your score. 

It’s critical for us as your Realtor to know how much you qualify for. We will use that information to help you determine what you can afford for a monthly payment. Just because you can afford a $200,000 house, doesn’t mean you’re necessarily going to be comfortable with that monthly payment. 

A lender will take all of your financial information in order to help you understand the kind of home you should be looking for, how much it’s going to cost you up front, and what it will cost you on a monthly basis. This information helps us, as the Realtor, find homes that fit into your specific criteria. 

Now that we’ve identified that you need a great lender, how do we go about finding one? Well, most Realtors have a list of lenders they’ve worked with in the past who have done a tremendous job. This is such a critical part of the real estate transaction that we do everything we can to find you a good lender who has a fantastic reputation. It’s important to be comfortable with this individual, as you will be sharing a lot of personal documents and your time with them.

Once you find a good lender, they will provide you with what’s called a Good Faith Estimate. This is a document that gives you a good idea of, once you’ve identified a home, how much your down payment is going to be, how much your interest is going to be, and how much your monthly payment is going to be. This will help you find exactly the right home for exactly the right price, and the transaction will be as smooth as possible!

If you have any questions about this or any other real estate topic, please don’t hesitate to reach out to us. We would love to hear from you!

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