Five Steps to Success
Assemble Your Team
When buying a home, it’s important to find the right professionals to help make your dream a reality. Spend some time and do your research before committing to a real estate agent. It’s more than personalities (although that’s important too); it’s really about expertise and specialization. Be skeptical of anyone who says that they can do it all, because no one truly can. Instead, ask around and get some recommendations for agents who sell in your desired area. Local neighborhood knowledge is key and can help give you an important advantage.
The other team member to spend some time getting to know is your lender. The right mortgage professional isn’t just there to make sure you sign papers on time, but also, they are key to ensuring the entire process runs smoothly and that you aren’t surprised by any of the financial aspects of buying a home. Before meeting with your lender, it’s important to understand your budget and what your responsibilities will be. You can start this process by using a Mortgage Calculator to provide an estimation before meeting with a lender.
Understand Your Budget
A mortgage professional will help you navigate all the financial aspects of buying a new home, including budget. Together, you will create a draft budget and talk through several items to be considered, including:
- Contributions to a down payment, including any down payment assistance for which you might be eligible.
- Obligations for associated expenditures such as upfront costs, insurance, property taxes and homeowners’ association fees.
- Credit rating and current debt and their impact on the homebuying process.
- Long-term financial goals and how they correlate with your homebuying budget.
- Financial reserves so that you can still manage mortgage payments if your employment status changes.
Unique Opportunities and Preapproval
There are a variety of different programs and tax benefits available to first-time homebuyers. Sit down with an experienced lender to review your options and determine a mortgage solution that meets your needs.
It’s also important to be preapproved for a home loan. Having a preapproval in place means that you have provided written evidence of income, expenses, assets, liabilities and credit, and the lender has verified that information. Since most of the paperwork has been completed, it tells the seller that the closing process is likely to go quickly and without problems. It also shows that you are serious about your commitment to buying the home. As a potential buyer, getting preapproved will give you a better chance of having your offer accepted as you can provide the seller with a financing commitment from Atlantic Union Bank.
Protect Your Investment
In a competitive housing market, some prospective homebuyers may consider waiving appraisals or inspections to make their offers more attractive. Home appraisals provide an accurate measure of a property’s value and help ensure you’re not paying more than a home is worth. At Atlantic Union Bank, we require appraisals on every loan application unless the borrower and the property qualify for a waiver, which is rare. Inspections, the examination of the condition and safety of a potential new home, are also a very important part of the home buying process and waiving them can be risky.
Be Patient
Ideally, every home sale would close on time and without issue. Unfortunately, any number of issues can pop up, delaying the process. It’s another reason why having an experienced mortgage professional on your team is so critical. They understand the process better than most and, if issues do arise, their experience and expertise can help resolve them quickly.
Buying your first home is an exciting experience and at first may be intimidating. What’s critical is doing your homework and putting together a team of professionals who are responsive, experienced and know the area. To learn more about how our experts at Atlantic Union Bank can help make your dream of owning a home a reality, please visit our Mortgage Page.
Atlantic Union Bank. Member FDIC. Equal Housing Lender. NMLS# 551889 This is not a commitment to lend or extend credit. All loans, credit and collateral are subject to approvals. Terms, rates, data, programs, information and conditions are subject to change without notice. Consult your tax advisor about deductibility. Not all loans or products are available in all states. Specific program restrictions may apply, so please consult your dedicated Mortgage Loan Officer to complete details.
