It is surpisingly easy to buy a house. Despite being the biggest purchase ( or purchases over a lifetime) the process is very straightforward. Here are the steps you need to take:
1. The pre-approval: You can go to any # of websites who offer you the chance to get ‘pre-approved.’ What does that mean, not much. The true pre-approval takes into a lot of different considerations in determining your ability to buy. As a customer you want to sit face to face with an experienced financial professional who will look at your available down payment, credit, assets, income, job history, payment history and more. They will be able to tell you how much you can afford and you will have to make the decision as to how much you are comfortable spending per month.
2. The right loan program: Picking the right loan program is important. Which loan program you will be eligible for will be determined by your financial history, assets and income. Different programs have different payment schedules, downpayment options and more. It is crucial that you pick the right program. For example, if you are only going to live in an area for 5 years on a work assignment you might want to consider an ARM product. If you are going to be living in a house longer you want at least a 15 to 30 year loan. It is crucial that you sit with an experienced loan officer who can guide you to the right program.
3. Applying for a loan: Here is where a lot of consumers will fall prey to the unscrupulous loan professional. It is critical here to get a written estimate of your costs involved in buying a home. The federal loans have recently changed so be sure to consult as to what your total costs will be.
If you would like to consult with someone that I consider to be honest and ethical please feel free to contact Jeff Smith. He is the Loan Officer in the Princeton Office and has a wealth of experience. jsmith@weichertfinancial.com
