| Check for any programs that could give you discounts, | | | | Your first step is to get pre-qualified. This is important, |
| dollars or both | | | | because it tells the seller that you're serious about |
| If this is your first house, and you're interested to find | | | | purchasing their home and that you should be able to |
| any special programs that you may be eligible for, call | | | | qualify for a home mortgage. Essentially what happens |
| your local government. There's usually someone at the | | | | is you provide the bank or mortgage company with |
| city or county level who will know if there are any | | | | some information and based on your credit score and |
| special programs in your area that you can apply for. | | | | salary, they will figure how much you can afford to |
| These programs can sometimes offer several | | | | spend on a house. Understand that this is not a |
| thousand dollars toward the purchase of your new | | | | guarantee of a home mortgage, but it is close. It |
| home. | | | | means that if all requirements are met on your |
| Also, if you work for the government, have ever been | | | | mortgage application, you will get your home mortgage. |
| in the military, have parents in the military, or teach, | | | | After you pre-qualify, don't even think about changing |
| there may be special programs for you through the | | | | jobs or quitting. Also, don't go buy a new car or |
| VA. VA loans are particularly attractive because you | | | | something requiring a large loan. This may sound like |
| won't be required to pay private mortgage insurance | | | | common sense, but people do it and it has derailed a |
| ($100 - $150/month) that is required when you borrow | | | | lot of home mortgages. Stay at your current place of |
| more than 80% of the value of the property. | | | | employment for just a little longer, if you can. If you |
| If you work for a large employer, ask if they have a | | | | can't, get another job and let your home mortgage |
| special relationship with a bank. | | | | company representative know what is going on. If they |
| Often large employers work special deals with banks | | | | find out you quit right before closing, they can cancel |
| for their employees to get good home mortgages. | | | | the home mortgage. So stay where you are. |
| After all, employees who have a home mortgage are | | | | Next, find a house. This is the fun part. You can either |
| happier and less likely to quit. Even relatives may be | | | | go with a real estate agent, or find a house yourself. |
| willing to help you out with your down payment, so that | | | | Bear in mind, though, that the seller is paying the agent, |
| you can get your home mortgage. | | | | not you. So it won't cost you anything to have an |
| This is very common for first time home buyers. I | | | | agent work for you. And the agent will walk you |
| borrowed a small amount from my parents to help | | | | through the process. |
| with closing costs. Others I know have borrowed the | | | | Finally, pick your closing real estate agent. You have |
| entire amount needed to purchase a house in order to | | | | the right to decide which law firm will close your home |
| get a lower interest rate. | | | | mortgage. Every law firm charges something different, |
| I recommend that you visit a few local banks or credit | | | | so call around. You could save hundreds. Your closing |
| unions; they have an interest in helping out locals. Many | | | | agent will put together the finishing touches on your |
| banks have at least one person specializing in finding | | | | purchase and help you get into your new house. If you |
| home mortgages for first-time home buyers. Don't be | | | | tell them that this is your first time, they will be careful |
| shy, you won't know unless you ask. And often, a | | | | to walk you through the process. The timeline from |
| home mortgage payment is less than, or the same as, | | | | pre-qualification to closing can take as long as three |
| rent. Since this is your first home mortgage, things will | | | | months, so be patient. |
| be easier for you if you have a person that you can | | | | You are not alone in your home mortgage process. |
| sit down and talk to. Going over the phone or internet | | | | As scary as it seems, everyone you talk to will want |
| for your first home mortgage can leave you without | | | | you to have the right house. And that is what makes |
| someone to help you through the process. On the | | | | the business great. |
| other hand, some home mortgage companies may be | | | | Buying a house changes your life. A lot like having a |
| faster than banks. It really depends on whomever | | | | baby, things are never the same again for you. There |
| you're working with. The bottomline is that there are | | | | are many people out there to help first time |
| many options. | | | | homebuyers get a home mortgage. It is an exciting |
| Get Pre-Qualified First (before you go house hunting): | | | | time; enjoy this new experience. |