Close
< BACK Subscribe

First-time home buyers want to know:

February 5th, 2021



First-time home buyers are usually very excited about finding and purchasing their first home. The question I always get when I meet with a new buyer is, “Where do I start?”

The first thing buyers need to do is determine their purchasing power. They will need to know how much home they are qualified to buy, what monthly payment they can afford, and how much cash they will need to bring to the table at closing.

This will require that buyers meet with a lender to get a pre-qualification, or a pre-approval for a mortgage.

Generally, a lender will review a buyer’s credit, verify income, look at their debt, determine a debt-to-income ratio, and come up with an amount that the buyer would qualify to borrow. This usually requires the buyer to submit bank statements, pay stubs, income tax returns and some other documents that present a picture of their financial fitness.

The lender can do a quick credit check and issue a pre-qualification based on information given verbally by the buyer. Or, the lender can do a thorough review of the buyer’s documents and issue a pre-approval.

The pre-approval is much better than the pre-qualification because it means the lender has already verified the information required for the loan. The pre-qualification only means that the buyer looks qualified up front, but the lender still has more documents to review.

If you are ready to purchase your first home, you should go ahead and contact a lender to get a pre-approval. You can contact your bank or credit union for this, or you can ask your Realtor for recommendations for good local mortgage lenders.

You will need to have a letter from the lender showing you are pre-qualified or pre-approved for a loan before you can submit an offer on a home. A home seller is not likely to even consider your offer unless you can show that you are financially qualified to purchase the home.

The lender will also help you determine what monthly payment you can afford, and how much money you need to have saved for down payment and closing costs.

If you are ready to start looking for a home, call Rose King and she will help you get started!       

Rose King

David Tracy Real Estate

713-562-5888 / rose@rosekingrealtor.com


Join the discussion

To post a comment on this blog post, you must be an HAR Account subscriber, or a member of HAR. If you are an HAR Account subscriber or a member of HAR, please click here to login. If you would like to create an HAR Account account, please click here.

Login to Comment
Disclaimer : The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the Houston Association of REALTORS®

Join My Blog

Providing information for first-time buyers, move-up buyers, homeowners looking to sell, and others with real estate questions and concerns.
David Tracy Real Estate
1404 Cambridge Dr, Friendswood, TX 77546   Get Directions
Phone: (713) 562-5888
Fax:
  • Archive
    •     2022
    •     2021
    •     2020
    •     2019
    •     2018
    •     2017
    •     2016
    •     2015
    •     2014
    •     2013
    •     2012
    •     2011
    •     2010
    •     2009