Home Ownership… It’s Your First Home

Are you thinking of buying your first home?  Home ownership will probably be one of the biggest purchases you will make in your lifetime and it will also be one of the most rewarding!

Being know as “your lake minnetonka realtor” I have had the opportunity to work with first time home buyers in addition to past clients who come back to me to help sell their home or buy a different home.  I have over 23 years of real estate experience and with that knowledge of the real estate market, especially for first time home buyers who are thinking of making home ownership a priority. If you are thinking of purchasing your first home I have four important first steps you should keep in mind.

1) Know your spending limit.  Before you even begin to look at home with a realtor you should meet with a mortgage banker to see how much you qualify for and from there determine how much you want to spend.  From there a real estate agent can help find the home that meets your needs.

2) Be ready with documents.  Before you see a mortgage banker make sure you get your financial documents in order.  In determining how much you qualify for in a loan a banker will need various financial documents from you: W-2, monthly bank statements (including checking, savings, and other types of saving accounts), and more.  The mortgage banker you seek out for assist will let you know exactly what is needed.

3) Compare the lenders.  I encourage you to shop around for the best interest rate on a mortgage.  The amount of the loan you qualify for from a mortgage banker may not vary that much from other institutions; however, the monthly interest they charge may.  The lower the rate, the lower your monthly payment which means either more money saved.

4) Prepare by saving money.  When you meet with a mortgage banker you will learn there are different types of loans that require different amounts of money paid down at the time of purchase (the more money you put down at purchase time the smaller the mortgage you will have to take out).  In addition, when you find a home and close on the sale you will also have to pay closing costs (typically around 1% of the purchase price of your home).  Overall, the more money you have in savings the better.

As a first time home buyer if you take into consideration the four steps I mentioned, I believe you will find the home buying experience easier and more enjoyable, which buying a home should be!

If you would like help buying your first home or have any questions about mortgage bankers or the home buying process, please do not hesitate to contact me, Tim Landon, at 612-978-5471.  I would love to put my 23 years of experience to work for you and get you in your first home!

Happy house shopping!

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