Home Loan Pre-Approval-First Time Home Buyer

So you decided you want to purchase a house and would like to start looking for that dream home, however you are unsure how to start the process. As a first time home buyer the excitement of owning a home has led you to start looking on the internet and you found a few houses you wouldn’t mind checking out over the weekend. You decide to make plans to contact a Realtor to begin the shopping process. Upon contacting a Realtor regarding the listings you would like to view, she begins asking questions like, “Do you have a home to sell? Are you renting? What is your time-frame? And last of all, do you have a home loan pre-approval?” No, so now what do we do? What follows are 3 very valuable tips to getting the home search off on the “right foot”.

3 Valuable Tips The First Time Home Buyer Should Follow

1. Don’t Waste Your Realtor’s Time – When you contact a Realtor, be upfront about where you are in the home buying process. The reality is before you are shown homes by a Realtor, they will want to know whether or not you can not only afford the home, but more importantly will you qualify for a home loan. You can’t blame them as their time is valuable!

2. Contact CHL Mortgage and set up an appointment with a Loan Officer (in person or over the phone) and begin the home loan pre-approval process. By going through the pre-approval process, you will gain an understanding of your:

Credit history and profile – is your credit score sufficient to qualify for a mortgage and if so, you will be advised of the best mortgage options and home loan programs available to you. Should you have some issues with your credit, your Loan Officer may be able to make recommendations on how to possibly improve your credit.

Income Documentation – based on your income, down payment availability and credit scores, determine how much of a home loan will you qualify for and most importantly, what is the estimated monthly payment including your property taxes and homeowner’s insurance premium. Knowing what your estimated monthly housing payment will be will help guide you in searching for homes in your “affordability” range.

Some of the questions and information you will need for the pre-approval is listed by clicking on the image to the right →

3. Have Your Home Loan Pre-Approval Letter In Hand – By having obtained home loan pre-approval from a reputable home loan lender, CHL Mortgage, you automatically demonstrate that you are a serious buyer and the Realtor will work diligently on your behalf to assist you in finding your dream home. With a home loan pre-approval letter, should you want to make an offer on a home, your Realtor will present the offer to the home seller. Without a home loan pre-approval letter, chances are your offer will NOT be presented.