In our last blog, we discussed that the First Step for a First Time Home Buyer is to select a really good real estate agent.

2nd Step for a first time home buyer

And the very next step for a first time home buyer is to get pre-qualified with a lender.  And what that means is for the buyer to meet with a good lender and figure out exactly how much home the buyer can afford but maybe more importantly, figure out how much of a monthly mortgage payment the buyer is comfortable with.


Once a buyer does this, then the buyer can be strategic and intentional with their home search.  It will allow the buyer to narrow down the number of homes they are going to view.  And it will also allow the real estate agent who is helping them with their search to have a more narrow focus as well.


Too many times, a first time buyer will start looking at homes on line BEFORE they even know how much home they can afford.  And I have seen it happen many times, where a buyer will start out looking in a certain price range, then get interested in a home and want to put in a contract.  And then the buyer will meet with a lender only to find out that they can't afford the home OR they have some credit repair to do before they could move forward on the home.


And speaking of credit repair, so many buyers want to buy a home but for whatever reason, their credit situation is not the best.  And the first time home buyer knows their credit situation is not the best BUT they don't want any one else to know their credit situation is not the best.


HOWEVER, the problem with that philosophy is that UNTIL you find out exactly where you are at, how then are you supposed to put together a plan of attack to get to where you want to be?  Your credit score will not magically go up on its own.  Your judgements will not be removed from your file by chance.


No, a first time home buyer has to have a plan to succeed.  Maybe it takes 90 days to be ready to move forward.  Or maybe it takes 6 months to a year to move forward.  But until you rip off the band aid, your wound will never heal.  Right?


So to summarize, first time home buyers, once you have selected a good real estate agent, ask your agent for a recommendation on a lender to get pre-qualified.  And i would encourage all first time home buyers to shop around.


Well that is it for today.  Next time we will discuss the importance of selecting a good lender.