Welcome to 2022. We have done it. Is anyone else happy to say goodbye to 2021?
Have you started your New Years Resolutions, or are you like me and don’t have any? I prefer to have goals rather than resolutions. A resolution is defined as “a firm decision to do something”, and the word I don’t like in that definition is “firm”. It feels mobile to me and I like the goal lines set in black and white. Correctly set goals are measurable, defined, achievable, relevant and time-bound.
How many of you are aiming to buy a home in 2022? Today I am going to discuss some steps to take to prepare to achieve this goal. It is important to note that the sequence of these steps can be significantly different for first-time buyers. With that in mind, let’s go!
Step 1: Find a Reputable and Trusted Loan Officer
Perhaps one of the most important steps on this list, a good loan officer can make all the difference in your home buying experience. Whether you’re buying your first or your seventh home, a good loan officer can meet your exact needs. Most importantly, having someone you trust is essential for such a large transaction.
Step 2: Get a credit consultation with your loan officer
A credit consultation is not yet a pre-approval, it is a free credit check. If you have near perfect credit, great! You can expect this step to be a quick process. If your credit is far from near perfect (which a lot of people actually are), it may take 15 to 30 minutes to assess how to improve your score. Sometimes small changes can make a big impact in a short time, and having a professional who can help you turn the credit dials properly makes a big difference.
Step 3: Know your loan options
It is not yet a pre-approval. Instead, it’s an in-depth discussion with your loan officer to determine things like:
✔ Down payment conditions
✔ Components of a mortgage payment (principal and interest, escrow, PMI)
✔ Special programs for certain segments of borrowers and locations
✔ Processing and underwriting sequences and timing expectations Step 4: Know your purchasing power
Okay, stay with me, but that’s not a pre-approval either… yet. Knowing your purchasing power leads to your pre-approval, and it will help you and your agent save a tremendous amount of time with your home search. Knowing and understanding your budget limits will eliminate the “I wonder if we could afford this house”. feelings and questions.
Step 5: Find an awesome real estate agent
There are thousands of real estate agents to choose from. Finding a good one is very important. It’s a position of trust and you want to take it seriously. A good agent can be the difference between getting the house of your dreams and being in a financial pit.
Step 6: Get pre-approved
In fact no ? If you’ve followed the other steps outlined above, the pre-approval process is already pretty much complete. If you haven’t completed the other steps, you can still pre-approve, but it might take a little longer. This process will outline the documents you need to work on the organization for the underwriting. Underwriting doesn’t start until you find a home, but preparing in advance will make the process painless. And yes, the subscription can be painless.
Buying a home can seem daunting, but it doesn’t have to be. Use these steps as a simple road map to get to your destination. Getting started might seem difficult, but making that first call to a loan officer will tell you exactly what you need to do.
The entire Fountain Mortgage team really enjoys knowing our clients and offering them several options and scenarios tailored to their specific financial situation. Don’t hesitate to give us a call anytime to get started, and happy new year 2022!
This weekly sponsored column is written by Fountain Mortgage. Located in Prairie Village, Fountain Mortgage is dedicated to educating and empowering clients to make the best financial decision possible for their situation. Contact Fontaine today.
Mike Miles’ NMLS ID number: 265927; Fontaine Mortgage NMLS: 1138268