"Adventures in 1st Time Home Buying, Part One"

Welcome to "Real Estate in Kitsap County." My name is Rich Jacobson, a licensed professional real estate agent on the Kitsap Peninsula in scenic Washington State. This blog was originally posted on the ActiveRain Community.

This is the first in an on-going series of posts dedicated to helping 1st Time Home Buyers successfully achieve their purchasing goals. Each time, we will identify and discuss, in chronological order, key events in the home buying process.

Today’s topic: Mortgage Lending and Loan Pre-Approval

The first step in your home-buying adventure should be to find an experienced mortgage loan specialist. Before you start the home-search process, you need to know if you're in a position to purchase a house, and at what price. A seasoned mortgage professional will be able to review your current financial status and determine if buying a house is a realistic and prudent goal for you. Sometimes, people need to pay-off some outstanding debts first, or repair a past credit problem. A qualified loan specialist can help you to formulate a game plan for working through these issues.

The next step is to help you select a loan product this best suited for your specific needs. Years ago, buying a home required a substantial cash down payment. Now days, there are many very creative programs available, specifically for 1st time buyers, making it easier than ever to qualify for a home purchase.

Once your mortgage specialist has reviewed and verified all of your financial information, and you’ve selected a particular loan, he can determine a suggested price range to fit within your budget. This price range will serve to drive your home-searching process. Many times a loan pre-approval letter can be provided by your lender, helping to better portray you as a strong, qualified Buyer.

Here are some helpful suggestions:

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  Identify, interview, and evaluate at least 3 different lending sources. Obtain recommendations from your real estate agent or friends.
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  Ask lots of questions. Mark Flanders with Olympic Northwest Mortgage says there are 3 key elements to finding a good loan specialist: They need to be knowledgeable and willing to take the time to educate 1st time buyers. They need to have the ability to empathize with people, understanding their individual needs and issues. And there needs to be a relational chemistry between the Buyers and their mortgage specialist.
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  Use a local lender. It makes sense to work with someone who knows the nuances of your particular market and can respond quickly to any issues that may arise. It's also easier for area agents and title/escrow offices to coordinate the transaction with local lenders.
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  Don't shop for lenders based solely on the interest rates they quote. Just because someone offers you the lowest rate doesn't always make them the best choice.

One suggestion worth mentioning at this point. Access the ActiveRain website, go to the Home page, and click on the state where you will be buying your 1st home. Next, click on the specific county. Many times the particular town or city you are interested in will be listed, along with the profiles and contact information of mortgage specialists located in those areas. This would be an excellent starting point for networking with potential lenders.

Having a knowledgeable mortgage specialist as part of your team will help you to successfully achieve your home-buying adventure!

Rich Jacobson, www.KitsapLife.com