Homebuyer education is extremely important for first time homebuyers, as purchasing a home is an exciting yet complicated process. If you are a first time homebuyer, you most likely have questions about the home buying process and obtaining a mortgage. Below are some of the most frequently asked questions that first time homebuyers have about the home buying process.
1. Should I contact a realtor?
Using the services offered by a real estate broker may not be for everyone; however, an experienced realtor can help guide you through the process and help you set realistic goals. It is also important to meet with a lending officer during the home buying process to identify a price range of homes you should be looking at based on what mortgage you can qualify for.
There are other costs associated with this process aside from just obtaining a mortgage. You will have to pay a realtor fee if you choose to use one, as well as closing costs, which include attorney fees, inspections, underwriting and processing.
3. What documents do I need to apply for a mortgage?
You can save a great deal of time if you have all the documents with you when meeting with your lender. Some of the major things that you will need include your social security number, copies of your bank statements for the past 2+ months, a paycheck stub with your earnings, evidence of other assets such as stocks or bonds, a complete list of all credit accounts, car loans, your last 2 years’ Federal Tax Returns, last 2 years’ W2 forms and a photo ID. Please contact your bank lending department for full details.
4. Can I become a homebuyer with less than ideal credit?
Even if your credit score is not where it should be, there are options available to obtain a mortgage. There are federal mortgage programs available for homebuyers who do not have the credit score needed to get approved by a financial institution on their own, and many of these programs still obtain the financing through a certified bank.
If you would like more homebuyer education materials or would like to learn more about the home buying process, download our First Time Home Buyer eBook now!