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The First Step when Buying a Home

So, you’ve decided that you’re ready to buy a new home!  You’re so excited and start looking online at listings. You call me up and tell me about all the amazing homes that you’ve found and want to go see them , and although I’m excited to help you find that perfect new home, the first thing I say is “Have you talked to a lender?”.  That may not be the first thing you want to hear, but it is the first thing you should do before searching for a home.

A lender will help you understand which type of loan would be best for you to use and also let you know what amount you will be approved for.   This is very important to know before you start looking.  It could be heart breaking to find a home that is “just perfect” for you and then not be able to afford it.  You will also want to discuss monthly payments with your lender.  You may be approved for a certain amount but not want to have monthly payments that are that high.   Knowing that information will help you really determine the price range you are comfortable looking at and gives your realtor a good starting point when helping you find homes that meet your needs.  There are different types of loans with a range of down payment requirements or options.  A lender will help to explain the differences of each type and help find what will be the best option for you.

Types of Loans that you might be looking at:

Conventional: This is the most common and usually requires between 3%-20% down.  A conventional loan does not have as many property requirements as the other loans mentioned here.

FHA/VA: This can be a low down payment option for qualifying buyers.  Your lender will help walk you through details of this option.  One of the differences between these and a conventional loan is that the FHA appraiser will come to inspect the home and will require the property to be in a certain condition in order to use this loan.  For this reason, if I know one of my buyers is using one of these loans I will guide them to properties that will most likely meet those requirements.

USDA:  This would be for more rural properties.  It’s a great 0% down option.

Finding your new home can be a very exciting process.  If I can help you find a lender or if you have any additional questions please reach out to me, I’d be happy to help.

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