First time home buyers – step 1.  Now that you are used to the idea of buying a home, it’s time to get started.  Step 1 would be to prepare a real budget.  Figure out just how much you can afford to pay each month.  What are you paying in rent?  Sometimes buying a home can give you a mortgage payment that is less than what you are paying in rent.  And that includes taxes and insurance.  With interest rates so low, it might be cheaper for you to buy rather than rent.  Because of the high demand of rentals these days the rent rates have increased.

Now you have that number in your head.  Get all of your papers in order.  The lender is going to need from you two years of tax returns, pay-stubs for two months, bank statements for two months, W-2 for two years…  You get the picture – two year’s worth of documents need to be available for the lender.   The other number you should know is your credit score.  If you can tell the lender this number they can get a pre-approval for you quicker.

Seek out a lender for your loan.  This is a scary step but don’t be shy.  The more you trust your lender and the more you share, the faster it will be to get a loan done.  If you get turned down, brush it off and go to another lender.  Believe me, there is probably a lender out there that will work with you.  Standards are all over the place so don’t let this intimidate you.   My last buyer – turned down by their bank – didn’t get past pre-approval.  They went to another local bank – got pre-approved, then got approved for a loan with a lower interest rate because of their good credit.  What’s up with the first bank?  Who knows?

Once you start this process, find a good Realtor to work with .  When you work with a Realtor and Lender in tandem it makes a strong team of three – You, Realtor and Lender all work together to help get a home purchased.  A rope of three strands is stronger!

Basically what I have been through with first time home buyers is that they have fear of the unknown.  They don’t want to share all of their personal information with people they don’t really know.  I get all of that.  But remember, we are all human – we have all been there.  We understand all you are going through and are here to help.  I am sure there are exceptions, and if you are not feeling comfortable with someone, go elsewhere.  There are many Realtors and many Lenders on the planet and there is one suited to you.

Bottom line – be persistent and take action for yourself.  You will find success in finding a home!  You can do it and will be happy when you do!  After all, the mortgage payments are an investment in YOU!

Happy Shopping.