The most important, (and often overlooked) step in the home buying process is to secure financing from a reputable lender. By talking with a lender FIRST, you will be able to find out how much home you can buy, as well as an estimate of your monthly house payment. Your local bank or mortgage lender will first take a preliminary application, also known as a "pre-qualification" app, to see if you're pre-qualified to buy based on your credit score and income, and how much they would be willing to loan you toward the purchase of a new home. With this information, you can then begin your home search, knowing in ADVANCE, how much home you can afford! A "pre-approval" usually comes after you've found your dream home, and are ready to make a purchase. This process will involve giving the lender more detailed financial information to make sure you are a good credit risk for the amount of the home you wish to buy.
There are several different types of lending programs available to new home buyers, and your lender will be able to go over each of them and determine which one is best for you. These programs include FHA, USDA, Conventional and VA loans. Qualifications, such as credit score, income and type of home being purchased, differ for each program, so its best to make sure you are dealing with a knowledgeable and experienced lender to make sure you get the best loan program for your new home needs.
Once you have been pre-approved for a particular loan program, you will work hand-in-hand with your loan officer to provide her with the most accurate information possible, to ensure a thorough and complete application process. But be warned -this process could take anywhere from a few weeks to a few months, from start to finish, before you are finally APPROVED for your new loan! Patience, perseverance and good communication skills are imperative to help the application process go along smoothly and as quickly as possible! When purchasing your new home from Frank's Home Place, your sales associate will also work side by side with you and your chosen lender to provide crucial information about your home purchase, as well as keeping in touch and getting updates from your loan officer, on your behalf. And although federal law prohibits us from actually discussing detailed credit and financial information with you, we will be happy to provide you with a list of reputable lenders in the area, as well as general information about the loan programs available to you for the type of home you want to purchase!
At Frank's Home Place, we understand that buying a new home can be a daunting and overwhelming experience, and make it our priority to give you as much information as possible about every aspect of the buying process. Feel free to call or email us with any questions about the home buying process, or read more in our FREE 5 Step Home Buyers Guide here! You can also apply for mortgage loan safely and securely by visiting our Financing page here!