Welcome to the fifth blog in the “Your First Home” The Proven Path to Home Ownership (Gary Keller, Dave Jenks, Jay Papasan) book discussion series.
You do not need to purchase to book to gain valuable information from this series, however it is a great resource for any first-time home buyer. This installment will address Securing Financing.
6 General Steps to Securing Financing (pg. 39)
1. Choose a loan officer (or mortgage specialist) – ask for referrals from friends, colleges.
2. Make a loan application and get preapproved.
3. Determine what you want to pay and select a loan option. – This is where a good officer can spell out all
your options and help you choose the best loan for your needs. Then begin the home process, having a good ideal how much home you can afford.
4. Submit to the lender an accepted purchase offer contract. – Once you find the home for you.
5. Get an appraisal and title commitment.
6. Obtain funding at closing.
Don’t break the bank….the most important aspect of the mortgage approval process is the very first step…you have to sit down, look at your budget, and figure out what you can comfortably afford. Worst case scenario, best case scenario, it’s best to look at it now before it becomes a reality later on…that way you are more in control. One feature of “the home for you” should be affordability.
3 Key Ingredients in Your Mortgage Options (pg.48-51)
1. Down Payment
2. Interest Rate
3. Term (Life of Loan)
These 3 factors are your key to determining the differences between the many loans out there. A good loan officer can use these factors to help find the loan for you based on your needs.
To sum it all up….
1. Find a good loan officer. Check credentials, ask for referrals from people you know, ask for testimonials.
2. Remember that lenders determine what you can borrow, only you can decide what you can afford.
Visit YourFirstHomeBook.com for worksheets and other resources.
