Nothing is more exciting than buying a house for the first time. Being a first-time home buyer in Colorado can be an intimidating process. What comes first? How do you prepare yourself for the best possible outcome? As a mortgage broker in Colorado Springs, we help you achieve your home-ownership dreams today! That’s why we’ve created this guide of things to do and not to do when it comes to purchasing your first home and obtaining your first home loan.
What To Know When Buying A House For The First Time
Examine Your Finances
Finances can change. However, for first-time homebuyers having a consistent budget will be very beneficial. It is important to check your credit score as well. A bad credit score can cause interest rates to skyrocket, or even for loan approval to be denied. When buying a house for the first time, you want to make sure that you are financially ready. Most lenders are looking for first time home buyers that have a steady income they can rely on, the ability to put down a down payment when buying the home, as well as a good credit history showing that the buyer will be able to pay the promised loan amount back.
Look at the Rates
After reviewing your finances, find loan rates that work for you. There are many different types of loans with various rates, so it’s important to find a mortgage lender who has your best interests in mind. Be sure to do your research on local companies, along with the various types of loans and rates that lenders have to offer. There’s even financial assistance programs and special government loans that can help, especially for first-time homebuyers. If you are a military member consider applying for a VA loan and learn more about VA Loans: Frequently Asked Questions.
Review the Loan Process
The steps of the loan process can be overwhelming. However, when buying a home, you want to make educated decisions. Because of this, it is crucial to research the loan process, so you are prepared each step of the way. Otherwise, it may be difficult to complete each of the steps, at least without being concerned throughout. The great news is that there is so much information out there regarding obtaining your first-time homebuyer loan and its process. In fact, we dedicate our blogs to posts that talk about the different facets of the mortgage process. Check out our latest posts here. And learn more specifically about how the Six Steps Of The Mortgage Process.
One of the most important steps of the loan process is to obtain pre-approval on your home loan. Having the pre-approval helps you determine a better price range for homes along with more accurate interest rates. Additionally, as a first-time, home buyer having pre-approval shows buyers your commitment to buying a house, which informs sellers that you are seriously wanting to purchase, making your offer appear to be stronger.
Talk to a Trusted Lender
However, the easiest way to ensure that you do things right as a first-time homebuyer is to find a trusted lender to confer with. An experienced lender will know so much more about the process and how to guarantee you the best possible rates and options for your mortgage. An experienced mortgage broker or lender will be able to advise you on first-time homebuyer programs, downpayment assistance, local programs, and credit counseling. In our case, The Reichert Mortgage Team is an experienced mortgage broker located in Colorado Springs skilled in providing personalized mortgage solutions for all homeowners especially veterans.
First Time Home-Buyer Mistakes
Last Minute Change
While buying a home, it is important to consider factors that could change the outcome of getting a loan approved or closing the deal. Many first-time homebuyers do not realize the effects of seemingly normal practices. One thing to avoid is taking on new loans. The extra loans don’t look great to a lender, and it may be difficult to manage finances with multiple loans. Another thing not to change is your credit score. Especially if your loan has already been pre-approved, a different credit score reflects badly on your financial literacy. Overall during this time pay close attention to your finances ensuring that you are still creditworthy to the lender.
Although it is important to research the best option and get the best rates, there comes a time when first-time homebuyers should just commit. Once you have done the research and gotten in contact with a trusted lender, it is time to lock down on rates. While the rates do change somewhat, constantly hesitating to purchase a home is not good practice for home buyers. If you’ve followed all the right steps, you can feel confident with the purchase of your new home!
For Additional First Time HomeBuyer Information Vist The Following Posts
- First Time Home Buyers Part I: What To Avoid
- First Time Home Buyers Part II: Down Payment Assistance
- First Time Home Buyers Part III: Mortgage Pre-Approval
The Reichert Mortgage Team | First Time Home Buyer Assistance and Loan Programs
As you prepare to make one of the largest financial decisions of your lives, we want you to have a professional on your side. At The Reichert Mortgage Team, we become your partners in the mortgage process. As a broker in Colorado Springs, we offer several assistance and loan programs for first time home buyers, and we can help you narrow down what is the best set of options for your unique situation. We also offer free credit counseling services! The Reichert Mortgage Team is dedicated to making sure that you both understand what is going on as well as know all of the options you can choose from. Our goal is to provide you with personalized mortgage solutions that are guaranteed to help you save money time and stress throughout your first home purchase. Contact us to talk with one of our qualified mortgage experts today!