Falling in love with a home you cannot finance is a heartbreak nobody warns you about, and it is entirely avoidable. Ten minutes at the front end saves you the whole thing.
Here is the order it goes in.
Know your number before you tour a single house.
This is step one and skipping it is the most common mistake buyers make. A written pre-approval certificate tells you exactly what you can spend and tells a listing agent you are serious. Most come back within the hour, once we have your documents.
You are allowed to not know things.
Nobody is born understanding escrow. We will explain every term, every number and every form, as many times as you need. First time buyers also have access to programs that other buyers do not, including down payment assistance and lower down payment loans.
Twenty percent was never the rule.
It is the number everybody repeats and it has kept a lot of people renting who did not need to be. Depending on the program and your situation, you may need three and a half percent, three percent, or nothing at all.
Gather these and the rest goes quickly.
None of this is unusual and you probably have most of it already. Having it ready is the difference between a smooth file and a slow one.
An estimate only. Taxes are figured at 1.25 percent and insurance at 0.35 percent of the price per year, and both vary quite a bit by state and by property. Mortgage insurance, association dues and any assistance program are not included. Your written pre-approval will carry the real numbers.
Often back within the hour, once we have the documents we need from you.
