I was terrified the first time I purchased a new home. Being a first time home buyer, I didn’t know who to talk to, where to find a Realtor, where to get a home loan. I stumbled my way through the home buying process. My realtor was decent but lacked in the area of communication, I never spoke to my lender, and I had no idea on the home buying process. I have started to make a video series on the steps you should complete to streamline your home buying process.
The Crucial First Step in the Home Buying Process
Don’t worry about the neighborhood you want to live in. Don’t worry about finding a Realtor. CONTACT A LENDER!!!
Now the question you’re probably asking your self is, “Do I just contact my bank and go with them?” The answer is yes and no.
Everyone who is interested in purchasing a home should contact THREE different lenders. The reason for this is because each lender may offer a better incentive deal for your business. One lender may assist you with your closing cost, One lender may have no origination fee, while another lender will pay for your home inspection.
The Advantage of Local Lenders
I personally always start with my Credit Union and then I reach out to local lenders. The advantage of local lenders are the following:
Local lenders are available 8-5 AZ time, while if you’re using an east coast lender, their hours of availability tend to be 5am-2pm AZ time.
Local lenders tend to have better communication in the process.
Local lenders get their business through referrals, so they seem to offer better customer service.
Once you have found a lender that you have a connection with. They will ask you for your tax statements, W2’s, and current pay stubs. This information is used to determine the amount of the home you can afford and your lender then provides you with a prequalification letter. This letter should be provided to the lender of your choice.
Remember the Lender and your Realtor work for you.