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When Should A First Time Maryland Home Buyer Meet With A Mortgage Lender?


System - Wednesday, October 28, 2015

When Should A First Time Maryland Home Buyer Meet With A Mortgage Lender?

Are you planning on buying your first home in 2016?  or 2017?  or even 2018? It is not too early to meet with a lender and start getting educated on financing options.  

I know you may think that planning a year or two out is crazy, but it is not. And now is a good time to get started.

Why Now Is The Right Time To Meet With A Home Mortgage Lender

Here is what we are seeing with Millennials:

1.  Millennials have good credit scores.

2.  Some Millennials have steady jobs with steady pay.  Some do not.

3.  Most Millennials have student debt.

4.  And very few Millennials have any savings for a down payment and closing costs.

These factors above make it hard for Millennials to purchase their first home.  But by planning ahead and getting educated on all of your financing options, we can put a plan in place that puts you into a strong position to buy in the future.

What A Lender Will Discuss With You About Buying Your First Home

A good lender and agent will discuss:

1.  How to raise your credit scores if necessary.

>> See Lending Expert Tips On Credit Reports & How To Qualify For A Mortgage

2.  How to document income from a variety of sources.  

If you are lucky, you are a W-2 employee and the lender can easily track your income over several years.  But many Millennials don't work this way.  They have some W-2 income, perhaps some 1099 income, and maybe some tips from waitressing.  Perhaps you have jumped jobs and have just landed your first steady position.  That is ok.  

By working with a lender now, before you are ready to buy, you will learn how to plan and document your income so that you are organized when it is time to apply for the loan.

>> See Creditworthiness: Can I Even Get Approved For A Mortgage Anymore?

3.  How Is Student debt (and other debt) affecting your credit report?

Do you know what is on your credit report?  You probably have had a crazy couple of years and with graduating college, trying to find a new job in perhaps a new city and also manage your finances, you may have fallen behind on some bills.  Pull a credit report.  What do you owe? What can you pay off?  What can you defer?  What can you clean up.  

By knowing and understanding your debt responsibilities, you can put a plan in place to increase your scores, pay off unnecessary debt and call credit bureaus about errors, if necessary.  

Be involved and take responsibility for your finances.  

>> See Top Ten Reasons Real Estate Loans Go Bad

4.  How are you going to pay for the down payment and closing costs?

Do you have a parent who will lend you money? Or do you qualify for a VA or FHA loan? Perhaps you qualify for some grants.  

>> See Buying Your First Home? Consider The Maryland Mortgage Program

All of this education takes time to research and you want to do it now, while you have time and are not stressed.  Find a lender who is an expert with 1st time buyers, one who understands grants and FHA loans and then sit down with them to put a plan together.  

Yes, I said sit down with them.  I know this is old fashioned but it works.  Don't just call someone from the internet.  Sit down with your lender and put a money plan in place now. You will be glad that you did. 

>> See Buyers: Please Keep Saving Your Money For Buying Your First Home!

>> See 10 Tips On How To Choose A Home Mortgage Lender

All of this planning and education takes time.  Time to meet with the lender and agent.   Time to raise your scores.  Time to save money.  If you are a first time Maryland home buyer, it is not too early to start planning your purchase and we believe that 4th quarter is a great time to put your 2016 budget into place. 

>> See Why Choose Yaffe Real Estate For All Your Baltimore Real Estate Needs

Give us a call anytime, we are ready to get started.


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