How do I start the loan process to buy a home?
The first step in the loan process is contacting a lender and getting pre-qualified. Lestel has two great lenders that she regularly works with that are on this website. Why work with those lenders? She recommends lenders that are good at what they do and that have a proven track record of getting the deal done.
They also take great care of Lestel’s clients, which is important to her.
Why do I have to get pre-qualified?
It is important to get pre-qualified so that you know how much you can spend to
buy a home. You also can discuss your goals with your mortgage loan officer so
that your home purchase is planned and is in keeping with your financial goals.
The process of getting pre-qualified also provides you with a letter that you can
use when you are ready to write an offer on a property. This letter is important
and often required by sellers. They want to make sure that you can buy your
home. It is important to get pre-qualified before looking at property or signing a
What do I need to provide to get prequalified?
The lender will provide you with a list that will include the following items. They
will need to see an ID, your w-2 from your employment, paystubs, bank
statements (two months), they will pull your credit report. In order to do that
they will need your social security number, and birth date. They will look at your
assets. All of this information will help determine the loan products that will be
available that will work best for you. Loans types include, conventional, FHA, VA,
Jumbo, USDA and more.
How much will I need for down payment and closing costs?
The answer to this question is…It depends on the loan product that you will be
getting. It can be as low as no money for down payment, and can be as high as 20
percent. Closing cost typically run about 3% of the loan amount. There are
creative ways that the amount that you bring to closing can be minimized. You
will need to talk to your loan officer and your realtor about that.
What are you waiting for? A good real estate agent and loan officer, working
together can help you through the home buying process. They can help you
realize your dream of home ownership.