FIRST TIME HOMEBUYERS
Thank you for selecting our firm to assist you with the home buying process. We consider it an honor and priviledge to take part in this milestone with you. As the agent or broker has probably informed you, there is a process in home buying that starts prior to going to a lender. Our brokerage policy for agents working with buyers is the initial qualifying process to determine if the expectations of the prospect are consist with the financial status which include credit consideration.
Getting Pre-Approved for a Loan:
First things first- Let’s get you pre-approved for a loan! Obtaining a pre-approval from a lender is the first step in the home buying process even before you start looking for homes. Why? You want to know the amount of the loan that you can get so that you’re not searching for homes to that are not in your price range or searching for homes that you only think you qualify for. If you’re not currently working with a lender or mortgage professional, our agents will be more than happy to provide you with a list of recommended professionals.
The mortgage representative will determine your status as a potential borrower by obtaining some basic information such as as annual income, debt expenditures, and creditworthiness. A ratio will be determined based upon the data provided for your debt compared to your income. If there are any credit issues such as: delinquencies, collection accounts or unpaid balances that could adversely affect your ability for loan approval, your mortgage representative will discuss how to address the matter(s).
Once the pre-qualification process is complete, the mortgage representative will need to take out a home loan application, where more detailed information will be obtained from you as the prospective borrower such as: two years of household tax returns (for each borrower if taxes filed separately), current pay stubs, and W-2. This process is called ‘pre-approval’, where the lender will determine the amount or price a mortgage underwriter might approval the borrower for based on the submitted loan application.
A document called a ‘pre-approval’ letter is then generated that specifies the sales price and loan amount maximum the borrower will qualify for. This letter is necessary for our agents to submit an offer to potential sellers on your behalf along with proof of funds (recent bank or credit union statement) with the purchase agreement.
Before we start the search for your new home, our real estate professional will provide you with a contract to represent you exclusively. The buyer’s agent is usually always paid from the seller side as a percentage of the purchase price so there will no out of pocket cost to you as the borrower for the services we provide.
Now comes the fun part of looking for a suitable first home for your and your family.
You and the agent will work in sync to locate the home you desire based upon your communication as to location, area, size, ammenities and price.
The assigned agent will calculate the monthly mortgage and interest payments and can provide an estimate on taxes/insurance amounts.
Again, thank you for choosing GRG and we look forward to working with you.