First Time Homebuyer? Start Here!

Your credit score is not the only factor in being approved for a mortgage, but it is an important part of determining what you will be able to qualify for. Here’s some ideas for getting your credit in top shape:

Check your credit report before meeting with a lender. You can get a free credit report once a year online by visiting annualcreditreport.com.

• Verify that your credit report is accurate. Identify any errors and dispute them with the credit bureau as soon as possible. Any unresolved disputes may lower your credit score and delay your loan approval.

• Focus on making ALL payments on time, and work on paying down high credit balances. Chipping away at those bills may positively affect your credit score and help you get approved with a better interest rate.

• Depending on your timeline for purchasing a home, it may be advisable to hold off on paying older collections as it can bring them current on your credit report, increasing their effect on your credit score. Give us a call if you’d like to discuss this!

While we do our best to explain things in a way that you’ll understand, learning some of the terms that are unique to the mortgage process can make the process easier to understand.

1. Explore our Mortgage Glossary to become more familiar with mortgage terms.

2. Get to know the different home loan types that are available to you.

When you’re trying to figure out how much house you can afford, start with your income. Then be sure to include all your expenses, including:

1. Monthly bills (utilities, loans, etc.)

2. Your costs of living (food, entertainment, etc.)

3. Estimated property taxes

4. Estimated homeowner’s insurance

5. Estimated private mortgage insurance

6. Potential Homeowners Association fees

In addition to these recurring costs, remember to factor in one-time costs during the buying process, including closing costs and your down payment. Need help? Use our Mortgage Calculators.

Traditionally, lenders will not qualify you for a mortgage unless your DTI is less than 50%. You can change your debt-to-income ratio by either increasing your monthly income or decreasing the amount of debt you carry each month. The second option is usually easier than the first, so pay down as many open credit accounts as you can.

Everyone wants to save money. When it comes to mortgages, saving a bit on your interest rate is great! But it isn’t as important as working with a reputable, trustworthy company that offers a wide variety of loan products and will work with you to get the best financing for your situation and ensure that your loan closes on time.

You’re not fully ready to start looking at homes until you understand the difference between pre-qualification and pre-approval.

1. Pre-qualification determines your ability to repay a loan based on the information you provide.

2. Pre-approval is a written commitment from a lender to extend a mortgage to you for a specific amount and time period. This involves an analysis of your financial status and credit history.

With a pre-approval, you’ll be able to set your budget, negotiate confidently and close faster. Realtors and sellers will often take your offer more seriously if you get pre-approved prior to house shopping. It lets them know you are ready to make a deal! Contact Team Psaradelis to discuss getting pre-approved today.

​Make sure you work with a real estate agent you can trust, who is experienced, and who has your best interests at heart. It’s always a good idea to get referrals from family and friends who’ve been through the homebuying process, or better yet, reach out to Team Psaradelis for a connection with one of the amazing realtors that we’ve worked with for years! When interviewing a potential realtor, be sure to ask questions to figure out if they are a good fit for you. 

Not sure what to ask? Here are some suggestions:

1. How long have you worked in real estate?

2. Is this your full-time job?

3. Have you sold other homes in the area I’m interested in?

4. How many total sales have you done in the last year?

5. Will you be present for the closing of my loan? (if this is important to you)

When choosing a home, include neighborhood safety, public school ratings, your daily commute and local amenities in your decision. If parks, libraries, pools, sports arenas, churches, restaurants or shopping centers are important to you, make sure you consider their proximity to your neighborhood. Try driving through the neighborhood at your typical commute hours to see how the traffic is.

All aspects of your income and finances are open for review when applying for a loan. Don’t make any major purchases like a car, large appliances or furniture, and try to minimize moving money around between your accounts. Also avoid changing employers during the home loan process. Steady employment or income is an important factor in qualifying for a loan.​​

Inspections are important, and in some cases required, to help you fully understand the condition of the home and understand if any issues are minor or major. They can also be helpful for purchase price or seller credit negotiations or to have additional services stipulated in the contract. Learn more here!

During the purchase process, a seller may make a variety of verbal guarantees. For example, the seller may promise to fix the roof before you move in or provide all of the kitchen appliances. Make sure this information is included in writing in any agreements you sign. If an agreement is not explicitly written in a contract, the seller is not obligated to abide by it. This also includes all of the details of your loan. Make sure the amount, payments, rate lock, and other details are clearly stated in writing in a signed document.