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How Can I Purchase My First Home?

The iServe Blog

If you're a first time homebuyer, the process of financing a home probably feels more complicated – and less fun – than shopping for one. Residential home loans come in all shapes and sizes, and securing your first mortgage can feel intimidating – but it doesn't have to be. Follow these steps to get the right home loan for your situation, and you'll be ready to move in before you know it.

1. Start Early

Believe it or not, it's best to start the home loan application process before you start shopping for your house. Residential home loans take time to approve, but you want to have proof that you're eligible for a loan when you make an offer on your dream house. This will show the seller you're serious and can give you an edge in a competitive market.

2. Know Your Budget

Sit down with a loan officer to discuss your needs and get pre-qualified for your first mortgage. This is an especially important step for a first time homebuyer, because you'll be given the maximum amount you qualify for along with an idea of your monthly payments. For most people, it's better to build your home loan budget around the amount you're comfortable paying monthly so you know you can keep up with payments.

3.  Start the Application

Being pre-qualified isn't the same thing as being pre-approved for your first mortgage. To apply, you'll need to gather a good deal of paperwork, including your driver's license, social security card, income tax returns, bank account statements and recent pay stubs. This can be time consuming and perhaps a bit stressful, so it's important to get the ball rolling before you make an offer on a property.

4. Answer Questions Honestly

Though it can feel to a first time homebuyer like your loan officer is being nosy, they really do need to know everything about your financial picture to show that you are a good risk – that is, that you'll pay back the loan. Do your best to be honest in answering their questions and provide the full picture of your finances to keep the process moving quickly and to make sure you get a home loan you can truly afford.

5. Make an Offer

Once you have your pre-qualification letter in hand, you're ready to make a serious offer on a house or condo you love. If the offer is accepted, you'll need to have a home inspection and appraisal done to make sure that the property is worth what you're paying before finalizing the loan. This is the way lenders protect themselves – and you – from making a bad investment.

When you're ready to get pre-qualified, iServe Residential Lending is here to help every first time homebuyer through the process. Contact us today to apply for your first mortgage – your dream home is waiting!