first time home buyer – owner loan

Denise

Look-up a mortgage broker. See if anyone can recommend someone because some are shady. The first step is to get pre-qualified for a mortgage so you know how much you can finance and what houses you need to be looking at. You could go to a bank, but banks usually only offer you the mortgage products from their bank or its affiliates. Mortgage brokers search for the best deal for you (they’re supposed to). After you get prequalified, you can go house shopping and some buyers may even want to see a prequalification letter as a show of confidence.

Bessie

First, contact a good real estate agent. Ask for a recommendation from friends and family members. The mortgage broker can come later.

Go on Realtor.com and look up various properties that are on the market in the area where you’d like to buy. Then, drive by the outsides of the ones that catch your interest and see what you think. Be sure to view the neighborhood in the evening and on the weekend, since that’s the time when the “real” community is visible and people are at home.

If you don’t have a recommendation for an agent, select one who is active in the area you have chosen on Realtor.com.

The rule of thumb is that you can afford a house that’s 2.5 times your annual income. That doesn’t mean you can qualify for a loan of that amount, but it will give you a general idea of the price range. It gives you room for additional expenses, including utilities, taxes, insurance and other items such as upkeep. Your real estate agent can help you with this, too.

Your real estate agent will be able to direct you to a mortgage lender with experience and a good reputation. Be sure to have any prospective home inspected professionally for defects in the structural or mechanical systems and for insects such as termites. If there’s a well and septic system, have that inspected, too.

Finally, before buying, ask a trusted friend or family member to look at the house with you. Good luck with all this. Exciting, isn’t it?