As a first time home buyer in Minnesota you can save yourself a lot of headache by knowing the process a head of time. Not only headaches, but you can also save yourself a good amount of money too.
You will first want to make sure that your credit score(s) are accurate. The great news is you can do this all online now and may not even need to make a phone call. Check out this government website and you can get a free annual credit report from the 3 main credit bureaus. You will also want to make sure that your credit score is over 640. The higher the score the more you can save on interest.
If your credit score is below 640 you may still be able to qualify for a first time home buyer loan, however it is very likely that you will putting down more than the 3.5% that the FHA requires as a minimum down payment. It is also likely that you will have a higher interest rate because of the lower score.
Once you are sure your credit is in order you will want to talk to a licensed mortgage professional such as myself so that I can go over your finances with you and help you determine how much of a home you can afford. We will also take care of the loan application so we can get you to the next step. After the loan application is completed you should receive:
A Good Faith Estimate – Listing out All Terms of Your Loan.
A Full Review of Your Credit Report
A Pre Approval Letter with a Dollar Amount You Qualify for
Now that you have been pre-qualified for a first time home loan it is time to find a local Realtor to help you find your new home.
Once you put in an offer and it is accepted your Realtor will contact you. You will then need to contact me, your licensed mortgage officer to submit your loan information to the lender for approval. This will include sitting down with me, your loan officer, going through the initial disclosures and submitting any additional information needed to submit to underwriting. Usually underwriting takes between 5 and 10 business days depending on lenders turn times.
As a first time home buyer in Minnesota there are many great deals to be found, and with mortgage rates still at near historic lows and home values still depressed, now is the best time to be a first time home buyer! Fill out the contact form to the right and we can talk about getting you the loan you need to make this a reality.