• CLICK TO CALL (877) 326-3268
  • CLICK TO EMAIL

Dane County Real Estate

  • Home
  • Search Homes
  • Real Estate
    • Why Hire an Agent?
    • First Time Home Buying
  • Your Home Team
  • Pre-Approval
  • Home Loans
  • News
CONTACT US

Advance Planning Can Help First Time Home Buyers Avoid Frustration

by Richard Surek / Tuesday, 06 February 2018 / Published in Dane County Real Estate News, US Lending News
Home-buying-madison-WI-real-estate

Buying a home for the first time may be exciting but it can also be frustrating. Buyers who aren’t prepared to meet the lender’s requirements or for the expenses associated with buying a property may be overwhelmed. This can happen even before they are able to get the keys to their new home. There are some things every prospective home buyer should do before they seek a preapproval for their first mortgage loan.

Credit

Credit can affect interest rates but it can also determine whether a buyer is able to purchase a home. Six months prior to walking into the bank to talk to a loan officer, anyone who wants to buy a home should get a copy of their credit report and check it for accuracy. Errors need to be corrected before the loan officer pulls a copy of the report. Buyers should avoid applying for new credit. Inquiries can lower their credit scores and cause their preapproved interest rate to be higher.

Get Documents in Order

Mortgage lenders require a lot of personal information. There are some documents a loan officer may ask to include. Things such as two years’ worth of W2s, two years’ tax returns, two months’ bank statements, recent pay stubs, a photo ID, divorce decree and bankruptcy discharge papers. Having all of these documents in order will make the processor’s work easier. It will also help the loan packet get to the underwriter faster.

Down Payment

Although the standard down payment is 20 percent, it isn’t always necessary for first time home buyers to save that much. There are several loan programs available today that require much less down. Federal Housing Administration Loans may be available to first time home buyers for as little as 3.5 percent down and veterans may be able to get loans with no down payment at all. However, regardless of the loan program, a buyer may have to pay mortgage insurance if save less than 20 percent for a down payment.

Maintenance

One important aspect of Home Buying people often don’t consider is the cost of maintaining the home after they close. The best way to avoid immediate maintenance costs is to have a home inspection. Although the buyer generally pays for the inspection, it may pay for itself in reduced maintenance expenses. After completing the assessment of the roof, basement, windows, insulation and HVAC, buyers may use the final report to negotiate with the seller. The seller may agree to make repairs or reduce the price of the house to compensate for flaws. A Real Estate Agent in Madison WI can help a first time home buyer negotiate with a seller.

First Time Home Buying doesn’t have to be frustrating. The more a buyer prepares in advance, the easier it will be to get approved for a mortgage and move into a great home. The planning process should start long before the family starts looking at houses. Shopping for a home can be a lot of fun if the family gets preapproved for a mortgage loan prior to attending the first open house.

Tagged under: Home Buying, Loans

About Richard Surek

What you can read next

Youth training center closing in northern Wisconsin
Dave Glomp: Kaleem Caire would expand education models, engage parents
Pfundheller, Douglas G.

Leave a Reply Cancel reply

Your email address will not be published.

Recent Posts

  • Attorney says UW-La Crosse professor was victim of ‘cancel culture’ in sexual misconduct case

    {{featured_button_text}} Elgin Bean An attorney...
  • Judiciary panel takes first steps toward impeachment vote

    WASHINGTON (AP) — The House Judiciary Committee...
  • Two Republicans introduce bill that would legalize medical marijuana

    {{featured_button_text}} Two Republican lawmake...
  • Jarry’s shutout streak ends as Montreal beats Penguins 4-1

    PITTSBURGH (AP) — Tomas Tatar’s 10th goal of th...
  • Badgers’ Dana Rettke named Northeast Region player of year

    Rettke University of Wisconsin junior Dana Rett...

Categories

  • Dane County Real Estate News
  • FHA Mortgages
  • Mortgage Loans
  • Purchase Mortgages
  • Refinance Mortgages
  • US Lending News
  • USDA Mortgages

US LENDING & REAL ESTATE

877-326-3268

6720 Frank Lloyd Wright Ave. Suite 104 Middleton, WI 53562

  • Home
  • Search Homes
  • Real Estate
    • Why Hire an Agent?
    • First Time Home Buying
  • Your Home Team
  • Pre-Approval
  • Home Loans
  • News
  • Home
  • Search Homes
  • Real Estate
    • Why Hire an Agent?
    • First Time Home Buying
  • Your Home Team
  • Pre-Approval
  • Home Loans
  • News

Terms of Use | Privacy Policy | Sitemap

NMLS #1152122 (View NMLS Consumer Access Page)
©2003-2019 US Lending Corporation, Dane County Real Estate and US Lending & Real Estate, all rights reserved. | 6720 Frank Lloyd Wright Ave. Suite 104 Middleton, WI 53562.

Lending services provided by US Lending Corporation, "US Lending & Real Estate" is a registered service mark (d/b/a) of US Lending Corporation, used under license.

Dane County Real Estate LLC License Numbers: WI 700869-91. US Lending & Real Estate Logo is a service mark (d/b/a) licensed to Dane County Real Estate LLC. Dane County Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. The Dane County Real Estate LLC main office is located in Middleton, WI. Contact: 877-326-3268. (View License)

TOP