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If you’re a previous renter who is looking to make their first entrance into the mortgage market and buy their first home, you might have questions in several areas. The mortgage application and homebuying process is both exciting and somewhat complex for first-timers, and this is just part of why it pays to have quality loan officers to work with through the various stages.

At Primary Residential Mortgage, we’re proud to serve a variety of clients with our range of home loan and mortgage options, including several programs that are ideal for first-time homebuyers entering the market. In addition to offering fantastic mortgage rates and great programs, however, we also offer expertise. This two-part series will go over several checklist items for the first-time homebuyer to keep in mind as they get started with and move through the mortgage and homebuying process.

Financial Evaluation and Loan Officer Pre-Qualification

Many of the earliest areas of a homebuying process will begin through contacting a loan officer like one of ours. There are a few processes such an officer might take you through, the most common of which is pre-qualification – a no-obligation process where they evaluate your finances and determine the amount of mortgage you’re likely able to afford based on them.

There will be several areas covered during pre-qualification or similar processes like pre-approval. You’ll be evaluating your income and factors like debt-to-income ratio, which expresses your monthly percentage of gross income that goes toward paying debt. These and other factors will help the loan officer gauge your creditworthiness and obtain general mortgage rates and amounts.

Credit History Factors

One major part of this evaluation that deserves its own section: Credit history and credit score, which are connected closely. If possible, check your credit ahead of time and take steps to improve it if it’s low, including potentially contacting a credit repair agency.

Savings Areas and Down Payment

You will also want to evaluate your savings and what you’ll have available for a mortgage down payment. Such amounts will range from 3% all the way up to 20% of the home’s purchase price depending on your financials and what you qualify for, but in any case you’ll need to have at least some bulk funds saved up.

Locating a Real Estate Agent

Before or as you’re getting into the house hunting segment of the process, it pays to identify a strong real estate agent. This person should have great local expertise and the ability to work comprehensively with your loan officer or others on your team. They will also be able to assist you with negotiating price and closing costs with home sellers in the area, plus walk you through other parts of the process.

For more on first-time homebuyer steps, or to learn about any of our mortgage loans, speak to the staff at Primary Residential Mortgage today.

*PRMI NMLS 3094. PRMI is an Equal Housing Lender. Some products and services may not be available in all states. Credit and collateral are subject to approval. Terms and conditions apply. Programs, rates, terms, and conditions are subject to change and are subject to borrower(s) qualification. This is not a commitment to lend. Opinions expressed are solely my own and do not express the views of my employer.