"We have been talking about buying our first home; what do we do next?

"We've been talking about buying our first home for awhile, and we are ready. What do we do next? Do we contact a real estate agent?"

This is a common question with new home buyers. You'd think that would be the next logical step; but, there is one very important step before finding the Realtor...find the lender! Of course most Realtors can direct you to a good loan officer or bank to get qualified; but, it might not be someone you are comfortable with; so I suggest doing a little research on your own.

To begin, get referrals; that's always the best way to go. If you are new to the area or don't know anyone who can refer you to a lender; Search the Internet and thoroughly investigate offerings for details. Advertising can be overwhelming, so squint through the mountains of ads to look for qualification requirements.Take notes and have questions prepared. The mortgage lending industry is electronic, everything is available to you in writing instantly. Once you've communicated, either by email or phone with a loan officer you feel comfortable with; schedule an appointment to meet in person. The loan officer, should give you a list of items you will need to bring with you, for pre-qualifying.

Anywhere from 3 to 7 days is how long it can take for a pre-approval. Pre-approval is different from pre-qualification. Pre-qualification in essence is having the loan officer review your documentation and saying "yep, based on what we are looking at in front of us, you qualify for home loan". A pre-approval is when your documentation has been forwarded to the underwriter; where they go over it in detail to determine if your ratios, income, credit, etc. look right for a lender to fund the loan. Upon the completion of underwriting, you will be informed by your loan officer that you have been pre-approved. The loan officer will then provide you with a letter to take to a Realtor; this allows the Realtor to know how to help you in your home search.

Trust me when I say it is best to take this step first! Most qualified Realtors will not show you homes without that letter of pre-approval. One reason is they need to know "what" your purchase power is, in order to show you the right homes. Second, no good Realtor will waste their time showing homes, only to find out you don't qualify to buy one.

As tempting as it is to jump right into the FUN part of home buying; you will save yourself heartache and time by taking the qualification step first. I can promise you, we are as excited as you to search for your new home...and even more excited when you come to us prepared!

"Helping Educate with the ABC's of Real Estate"