Tips for First Time Home Buyers – Preapproval and Choosing your Mortgage
As a first-time home buyer at Lake of the Ozarks, you want to set yourself up for success before you find the home of your dreams. Handling your financing up front is essential to your success and can prevent delays or obstacles to closing the sale. That is a two-part process, starting with preapproval, and then mortgage selection. As a first-time buyer you will have access to special loan programs that may give you a great money saving advantage, or allow you to purchase your home easier with low or no down payment. So, they are definitely worth checking into.
Preapproval.
Before you begin looking at homes, you should have a preapproval letter from your bank. Sometimes you will even want a second preapproval letter from another bank as a backup. In quick moving markets, a home will be gone long before you can get that done, so do that before you fall in love with a house. How much a bank will preapprove you for is based on financial documents including your bank statements, your credit score, and your W-2s. Preapproval is a relatively quick and easy process, and you are not obligated to get your loan through the institution you are preapproved with unless they stipulate that you are, which is uncommon. Before deciding on your mortgage, you will want to contact several lending institutions to compare rates and fees before deciding on who you will obtain your loan through.
Mortgage Selection.
That means the next step is to research and decide the institution from whom you will get your mortgage. Don’t feel obligated to stick with your current bank. For a purchase of this size, you will benefit from shopping around and comparing interest rates and origination fees, as well as discount points. Discount points can be purchased for an up-front fee to lower your interest rate and save you money in the long run. Be sure you are looking at all these factors to know you are comparing apples to apples.
As a first-time buyer, there are a number of programs designed just for you to help you buy your home. For example, here is a list of some of the most utilized
programs available for first time home buyers at Lake of the Ozarks that you may look into.
USDA loan – helps you purchase a rural property with no
down payment
VA loan – helps those with a military connection get a
loan with no down payment
FHA loan - helps borrowers with weaker credit
Fannie and Freddie loans – offers conventional loans with
only 3% down payment
State First Time Buyers Programs – offers assistance specific
to your state
Once you have obtained your preapproval and decided on your mortgage … job well-done, you are on your way! Next, comes the important decision of who will help you through the process and be your advocate when buying your first home at Lake of the Ozarks. We know you will have lots of questions along the way, and we have the answers. With the expertise and heart to walk you through every step confidently, we would be honored to be your buyer’s agent at Lake of the Ozarks. If you have questions, just know we are here for you.
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