Frequently Asked Questions:First Time Home Buyer Edition - The Home Loan Process

How much do I need to save up for a down payment?

3-3.5% is a good place to start. You can work with a mortgage lender to play around with numbers and see how your downpayment amount offsets your monthly payment, and especially with how PMI (Private Mortgage Insurance) works. 

How do I know if I qualify and how much I can afford?

Contact a mortgage lender to get pre-approval for a loan. The lender will ask you some basic questions about your income and debts and can tell you what amount you can be approved for, and how much your mortgage payments will be.

Pro Tip: If you are working with or know of a trusted Real Estate Agent, often times they have good recommendations to loan officers that you can talk to.

What does the lender need from me to give me a loan?

Usually, you are asked to provide your last two tax returns to show proof of income. You should also provide recent bank and credit card statements and proof of your current pay. You will also be asked for your SSN so they can run a credit check.

What's the difference between pre-approved and pre-qualified?

While often used interchangeably, these terms don’t mean the same thing. Pre-qualification is an estimate of what you may be approved for based only on the verbal information you provide. Pre-approval means the lender has verified your income and debt information and run a credit check.

How do I know which mortgage option is right for me?

Your mortgage lender is the best person to advise you on this question. Their products and qualifications change from time to time, so they would know best what products are available to meet your needs.

Do you have a mortgage lender I can talk to?

Yes, absolutely! I have a few that I work with that I can happily refer to you. Just ask and I'll connect you. You are welcome to use your own if you have someone in mind as well.

When should I get pre-approved?

About 3-6 months out from when you'd like to move. If that has already passed, no worries! Pre-approvals only take about 2-3 days, you just want to have that pre-approval before you begin shopping.