In my last blog- we discusssed the usual first step in buying a home. That step can take years of searching, dreaming and fact finding. That step is universal- when you are considering buying a home you "window shop' the internet, real estate magazines, newspaper ads or just riding around you are looking.
My blog is written with respect to Ulster County New York. Different regions in New York State have slightly different procedures but all the same real estate laws. Other states have different laws and may do things completely different. For this blog and this purpose I am writing about buying a home in Ulster County NY.
The second step to buying a home is the reality part. How much can I afford to spend on a house? You will need to get a pre-qualification for a mortgage. You can talk to your local bank, apply online, or go the a mortgage broker. It makes sense to talk to several different lenders and ask what products they offer and when you feel comfortable with a lender apply for pre-qualification. When starting the process of buying a home this is an important step. It will help in the search. You can now narrow down or broaden your search depending on how much mortgage you qualify for. You may also find that this is really not the right time for buying a home.
If you are not approved for buying a home the lender will give you advice on what you need to do to qualify. There are tips on how to improve your credit score. It may just take a few months and you will be able to begin the search. Ask your mortgage professional why your were denied and what you can do.
Your pre-qualification is based on credit score, income, available assets, property type you are seeking and the occupancy type. Occupancy types are primary residence, second home or income property.
Your lender will discuss with you the various types of loan products. There are may options that consumers are unaware of. There are conventional loans, VA Loans, USDA Rural Development loans. All varing in down payment, qualification and ease of closing.
So from here you walk away with a prequalification letter in hand, You have a sense of interest rates, closing costs.
If you need a recommendation on lenders in the Highland NY and New Paltz NY area that can help buying a home in Ulster County NY, I would be happy to help you with that. Email or call me anytime for help with that step.