Congratulations! Buying your first home is no small thing! This guide isn’t meant to replace your loan officer (but if you have questions beyond the guide I’d love to talk, email me here).

Do’s:

  • Talk to a Loan Originator early in the process
    • LOs want to help you get ready and a good one doesn’t mind talking to you months or even a year in advance to help you get ready!
  • Have your financial house in order
    • Do you need to have perfect credit? No, but the better your score the more options you will have!
  • Know the roles of your team
    • Your loan officer will be the person who helps navigate the financials and loan programs.
    • Your realtor is a local area expert, they are there to help you navigate the contract and offer process and be your advocate speaking with the seller’s side of the transaction.
      • Loan officers don’t make for good realtors, and realtors don’t make good loan officers!
  • Save for down payment and closing costs
    • In general you should plan to save up for a down payment of 3 or 3.5% of the purchase price. (100,000 x 3% =3,000 ). Closing costs vary from state to state, but a good rule of thumb is planning for an additional 6000 to 10,000.
  • Have an idea of what your maximum monthly payment needs to be. Your loan officer can back into ideal purchase price with this number.
    • Most online mortgage calculators actually do a pretty good job of calculating your payment. Be aware that they often will sell your information to online lenders who will then proceed to call you… a lot.
  • Ask your loan officer about special programs, down payment assistance etc. Not all programs are right for all people, but always ask!
  • Get an inspection.
    • I recommend getting your own inspector who is not referred by your realtor (or even your lender). Having a true, uninterested third party separate from the transaction can save you a lot of headache in the future!

Dont’s:

  • Add additional debt
    • Will this disqualify you on the spot? Not necessarily, but a lender has to get explanations for any credit pulls you have gotten recently and if you’ve added debt these have to be accounted for and added against your budget. It basically adds more paperwork and friction for you (and it may disqualify you due to budget if things are too tight).
  • Quit your job!
    • Seriously, income is one of the most important factors on your loan, you need to keep your job situation as steady and predicable as possible. Don’t start changing your schedule, or how you’re paid (going from salaried to hourly, or from hourly to commission, or W2 to 1099, or full time to part time).
  • Commit to a realtor or LO at first contact
    • The beautiful thing about being the buyer is nothing happens without you! No one gets paid, and a home doesn’t get sold until you commit to buying. This is too important of a life event to work with someone who isn’t treating a multi hundred thousand dollar transaction seriously.
      • Do remember that LOs and realtors are paid a commission however, if you know you’re moving onto someone else, we would appreciate the “breakup” call or text so we can move on. No one likes working on the weekend for a deal that’s not going to happen.

Basically all these points could have an “in general” behind them, but if you follow these guidelines you will be largely setup for success! Again, email me here with questions and I’ll be happy to touch base with you!