First time home buyers in Nanaimo part 2
This is the second in a series of posts that will assist first time home buyers prepare themselves for the experience of purchasing a home.
Get your financing in order
Many first time home buyers believe that if they have been pre-qualified for a mortgage that they can go ahead and make an offer on a home. There is a difference between being pre-qualified and being pre-APPROVED for a mortgage. Pre-qualified means that you could potentially get a loan for a specified amount based on information you have given the lender. Pre-approved means that you have supplied all of the necessary documents needed to do a thorough financial check and the lender is prepared to give you a loan. In order to get this approval the lender will need to look at your credit history, past tax returns, and your employment and income status.
In order to know what price range of house you qualify to purchase it is critical for first time home buyers to begin the loan approval process prior to looking for a home. Once you have been pre-approved the bank usually protects your rate for 60 days. This is a very comfortable amount of time to find a home in. In fact, it has been my experience that once a client has been pre-approved we are usually able to find the right home within two weeks.
Finding a lender to work with
As a REALTOR I have access to many lenders. Once we begin to work together I will supply you with a list of potential lenders you can approach. Your lender will establish a confidential relationship with you. It is not necessary for me to know how much you are going to borrow. The only financial information I will need to get from the lender is the value of home we should be looking for.
As a first time home buyer there are many mortgage options that may be available to you. Once you have been pre-approved then we can start the fun part. Finding the right home for you!
To view the other parts of this first time home buyers series please click here
For more detailed information on buying your first home please email me and request a copy of my FREE first time home buyers guide.