What's Next?

Continuing series...Now that we have things lined up, the next item of business is talking with a loan professional (that would be me-another shameless plug). Use someone that knows the market in which you are purchasing, and just like I mentioned about the Realtor- find a loan officer that this is their career, not just something dabble with on the side. As much as this pains me to tell you this- shop your lender. Just because your realtor says to use one particular person does not necessarily mean you will get the best rate or cost.
Most people consider the loan process as bad as going to the dentist, if not worse. I agree, it is tedious and capable of giving you ulcers, but in the end you will be in your nice little house if you just take a deep breath and know it will be over soon.
The first thing that will need to happen is, you need to get pre-qualified. To do this, an application is taken, your credit report is pulled and usually the information is run through the system to see if you are "approve eligible".  When you are talking to your loan officer- do not try to hide ANYTHING because we will find out! If you have had something happen in the past, let us know because it will save a whole lot of heartache in the end. If I know something up front, it makes it much easier for me to try to overcome it early versus later once the file has been submitted. Make sure you have your down payment and closing costs secured and it is in the bank. These days you are required to put down a minimum down payment of at least 3.5% FHA and there is a 3% down payment for Conventional, unless you use one of the special programs out there such as VA loan, bond money or Rural Development (there are guidelines you have to fit within on these programs). If you are receiving "gift" money from a family member this money MUST be documented as to where it came from, proof the donor had the ability to give it to you (must provide bank statement from donor) and where it went into your account- so keep ALL documentation.

Once we have what we need we can issue a pre-qualification letter. Make a note- most realtors will not show houses without this letter because they want to know that you can actually afford the houses you are looking at. You don't want to waste their time or yours looking for homes that are completely out of your price range.
Once you get that letter, you are free to begin looking so Happy House Hunting!