where should i go first if im a first time buyer?

Asked by Mayra47959, Brookston, IN Sat Apr 21, 2012

I have a full time job.. Im only 20 years old. But I have never bought a house before. Where should I go first if I dont really have credit.

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6
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Sun Apr 22, 2012
First steps:

1. Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.


2. Get a referral to a good, local, real estate attorney. Call the attorney, retain the attorney so you have her information handy when you make an offer. Having that information at time of offer helps you demonstrate to the Seller how serious you are, and they will consider your offer with more interest.

3. Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

4. Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Good luck!
Trevor Curran
NMLS #40140
1 vote
Mary Barnett, Agent, Crawfordsville, IN
Sat Apr 21, 2012
No credit is not necessarily a bad thing! The first step is getting prequalified by a lender, to see what price range of home you would comfortably be able to purchase. Feel free to contact me at the RE/MAX office in Crawfordsville, and I will gladly walk you through the steps.
1 vote
Trevor Curran, Mortgage Broker Or Lender, Great Neck, NY
Thu May 24, 2012
Hi Mayra,

When you say you don't really have credit: does that mean you have no credit accounts at all, or you have just one or two credit accounts?

There's an important distinction between the two that could help you determine if you're qualified for a mortgage, or not.

If you have NO credit at all, then visit http://consumer-action.org/

This is a great, not-for-profit organization about credit education. On their site you'll find tutorials on how to create and build a credit profile.

You'll need to have at least a two year credit history with 2 to 3 credit accounts open and active.

Trevor Curran
NMLS #40140
0 votes
Michael Patt…, Agent, Crawfordsville, IN
Thu May 24, 2012
For a first time home buyer I would recommend doing a little homework. There are agents as myself that specialize in first time home buyers, I would start there. They can direct you to a creditable lender, rather than taking a chance with one that has a fancy ad or promises everything. We do get anything from the lenders we use, many have built up relationships with them and have also learned which ones that may not be the right ones for the job. From there the lender will determine the best route to take. No credit isn't necessarily a problem in most cases. Ask a lot of questions and make sure the agent youre working with is knowledgeable, creditable and honest.
0 votes
Kimi Sharp, Agent, Lafayette, IN
Sat Apr 21, 2012
I would usually start by asking you additional questions, such as: How long have you been working at your current job? Do you have a downpayment? Each bank has it's own set of loan programs. They are not the same. At our office, we have a preliminary consultation first (via visit, phone, or email) so we know we are pointing you in the right direction... We have a 1st-Time Homebuyer Program we've developed because we feel you should be well-educated before you begin your search. If you are unable to get financing right now, we also provide other alternatives - we don't turn anyone away!
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Sat Apr 21, 2012
Having no credit is not all that bad and much better than having bad credit.

The first step is always the same = go speak with a loan officer or mortgage broker about seeing if you can get a loan. Don't sign or spend anything, just ask questions and get prequalified. The loan officer at the bank you use would be a good place to start since they already know you. After that find a Realtor to help guide you and show you what is available in your price range. To this point it will have cost you nothing, Good luck.
0 votes
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