People are buying homes every day. You probably know someone that is “in the market” for a Home.
You want to buy a home too but where do you start?
Step 1: Get pre-approved for a loan.
You can ask friends and family for a referral to a lender that they have used to obtain a mortgage or contact your bank. Either way, take this part seriously because it’s very important that you know how much you can spend and what your monthly payment will be. Online mortgage calculators are fine but some don’t add in taxes and insurance. Spend a couple of hours comparing what your bank has to offer versus a direct lender.
If you are a first time buyer, most likely you will buy a home with an FHA loan. FHA loans require 3.5% down payment. On a home priced at $200,000 that would be $7000. This down payment can be a gift from another person but I recommend saving your own money, that way you will be very proud of your accomplishment.
Once you have a letter from a lender that states that they will give you a loan to purchase a house, you are ready to start looking.
Sign up for an RSS feed of my blog – Step 2: Find a Realtor (coming in my blog next week)
