So, you’re thinking about buying a home. Where do you start?

The first thing I recommend is to get pre-qualified for a mortgage. Why? Typically, when you make an offer on a home, you will need a pre-approval letter for a mortgage. Most people selling a home require it to make sure that you are a qualified buyer. In many instances, they may not even show their home unless the buyer is pre-qualified.

Many institutions offer mortgages – you may want to start with the bank you currently use. There are also many mortgage-only institutions in your local area. You may want to ask your friends or family (your realtor is also a great resource) to see if they have one to recommend. There are also online mortgage providers – just be sure to check them out thoroughly ahead of time, because you will be giving them sensitive financial information.

A mortgage officer can provide a wealth of information. Here are some things you will need to have ready before you speak with them:

• Income (you may need to provide pay stubs)
• List of all debts – car payments, credit card statements, anything else you may owe
• Tax returns
• Bank statements

Types of Loans

There are many different types of mortgages, and your loan officer should be able to guide you to the best type for your personal situation. Some examples include FHA, VA, conventional, etc. Some loans are guaranteed by the government, but they usually have strict guidelines. Down payments and terms vary by the type of loan.

Pre-Approval

Once you have your pre-approval letter, it’s time to start looking! Get a local realtor (again, friends and family are good resources) and find your dream home!