FIRST TIME BUYER GUIDE. Please read this course, it has four parts.

Lesson 1 Pre-Buying Process

Pre Buying Process-Things to Consider Before Buying a Home
Mary-Jane Taglieri, Instructor

1. Credit Report:
Review your credit report at least 6 months prior to the start of house-hunting.
If there are issues that need clarifying, it may take several months. Having good credit is important because it entitles you to the best interest rate on a mortgage loan.
Ensure there are no issues with your credit report, and if there are, take steps to resolve them.

2. Seek pre-approval from a reputable lender:
{Define Preapproval}: An approval from a lender after all income and credit is verified detailing how much you can borrow at a given interest rate and down payment; and will be valid for some period of time.

Pre-approval is not the same as pre-qualified. Pre-qualified simply means how much of a loan that you might get if your credit is approved. This means nothing to a home seller and is meaningless to you as well. You need to know exactly what you can afford, before making a deposit on a property. You will be required to have a pre-approval letter before entering many listed properties. In being pre-approved, you will learn your price range and will not risk losing a deposit on a home.

When seeking a pre-approval, ensure that the lender you chose is reputable and is referred by a licensed real-estate agent, or a personal reference. A good real-estate agent will know which lenders can close the deal. All lenders are not the same, and several promise low interest and super deals which they can never deliver on. Remember, if it sounds too good to be true, it probably is. Interest rates are what they are, if one lender is promising something extraordinary, they won’t be able to deliver.

Make an appointment with a lender for the pre-approval process, often times, they can handle this via phone and fax. Ask them what documents they will need, and bring them to the appointment.

Ensure that you leave your lender with a pre-approval letter in hand. Your buyer’s agent will need a copy; always keep a copy for your records.

3. A note about financing: Evaluating financing.

Interest rates do vary product to product. It is important to have an idea about how long you wish to retain a mortgage and weigh costs associated with various mortgage products. Your lender should be able to explain the differences and their costs. There are also various amortization programs available which your lender should have at their disposal to assist you in realizing the cost of your mortgage and closing costs.

Ask about special programs available to you – special financing, or first-time buyer.

4. Hiring a competent, reputable buyer’s agent.

This is most important step.

Hiring a reputable buyer’s agent who will represent you in the buying transaction. The buyer’s agent will work to serve your interests and have a duty to act on your behalf. They are usually paid from the proceeds of the sale, and not from you directly. The buyer’s agent can assist you by providing information about towns and cities, the various properties, and overall provide education during the buying process.

CALL MJ I can help guide you through the entire buying process and have knowledge of the special financing programs available to first-time buyers designed to help save you thousands and get you in the buying market with little down payment.


Please call MJ at 978-979-0845 I will email and coach you through steps 2-4.

>> Must-dos for the homebuyer -- Here are steps to take to help you
decide whether you're ready to take the plunge.
Plus: Types of home mortgages

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