Trying to purchase my first home, what steps should I take?

Question

I've been to my bank and asked a few questions, but I'm not completely satisfied. Any advice is much appreciated.

From what I understand, I have to first go to a bank, or mortgage loaner and get pre-qualified. Then go to a real estate agent and have them help us find a house.

For some reason that seems to simple, what else do i need to do?

Answer 1

You may want to find an agent you trust first.  They'll be able to recommend several lenders.  Make sure they give you several options and perhaps a mortgage broker as well as a bank loan officer.  If you find a professional, they'll insist you are pre-approved or approved before the actual searching begins.

Make sure you agent matches your style and you can work together.  Do you want to see all the listings and narrow them down yourself or do you want to drive everywhere to see listings your agent chooses? The agent will be most valuable during negotiations and keeping the deal together, tracking deadlines, and such.  Best of all, you don't pay for it!

Good luck!

Answer 2

Here's what happens. When you find a house you want, you sit down with the seller.  She signs a deed.  You put your money on the table.  When she hands you the deed, she gets the money.  You own the house.  

But what if you don't have cash.  Don't worry too much about the loan.  You will be approved.  If you aren't ready you wouldn't be thinking about owning.  So you look everywhere.  With and without realty agents.  And you pay attention to the areas where you want to live.  You could even knock on doors and ask "Want to sell?" at places that look nice. Make it fun.

Once you find one, you buy it.  If it's asking $100,000, you offer $80,000 and they tell you that you are mean and hurtful and difficult.  Then they tell you $98,000... take it or leave it.   This is where it gets fun. Do you take it or leave it?  Only you can decide.  Get to work.

Answer 3

The first step is talking with a bank or mortgage broker.   Just call a local bank/mortgage person and ask to do the application over the phone.  Then, fax them your pay stubs, w2s, etc.

This way, by the time you meet the mortgage professional in person, he/she has already pre-approved you.  Now you just need to choose which loan works best for you and your goals.  Try to avoid PMI if possible, too.  

Once you get the loan taken care of...ask for the name of real estate agent to help you find your home.   Of course, you don't need a realtor to buy a home but they help

If you decide to buy a new home, make sure you don't use the builder's "in house" mortgage company as this set-up almost always causes problems down the road--taxes.

Good luck,

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Answer 4

it really is that simple. your mortgage officer will tell you any bad credit you have and can help you clean it off your record. the one thing you do not want to do is have your credit report run to many times while you are trying to buy. every time you have it ran it lowers your credit score. of you can find a home with a short sell you can save lots of money. a short sell is when the bank or mortgage company has taken back the home from the buyers and has agreed to sell the home for what owed on it and release the buyer from any bad credit that would of went against him. the only thing is you will not know the pay off  before you make a bid in writing. the one holding the mortgage will take the highest bid over the amount of what left on the note. my best friend is a  loan officer  and helped a friend buy a home valued at 227,000 for 138,000 the pay off was 112,000.