A First-Time Homebuyers Guide

THE MORTGAGE PROCESS

MADE SIMPLE

Where to start 

& what comes next 

By: Mandy Carstensen

“The ache for home lives in all of us, the safe place where we can go as we are and not be questioned.”

                                  - Maya Angelou

Even with this ache, the most common response I get when talking to renters about home ownership is, “I’m probably a year or so away from buying.” Ah, the classic, “tomorrow” of first-time buyers. The thing about tomorrow though, is that it never arrives.

Much that same way, you may very well be a year away from buying, but unless you have a detailed plan, such as building your credit to a specific score, saving a defined amount of money or maintaining your employment for a certain period, come a year from now- you’ll most likely be about a year away from buying.

The right time…

So, when is the right time to take that first intimidating step and reach out to a mortgage advisor?

Right Now!!

I’m serious and I’m talking to you.    

You may be tempted to put it off until tomorrow, but keep in mind the Spanish proverb, "Tomorrow is often the busiest day of the week".

It’s easy for first-time buyers to let analysis paralysis take over. But listen, you don’t need to be an expert in loan types, down payment options, escrow and title, appraisals and inspections, the bond market and rates. What you need is to find an expert you trust to guide you through, one step at a time.

Mortgages and Myths

It’s also easy to believe a lot of myths about mortgages. So, what I’d like to do before you finish this up is dispel some of the most common misconceptions you might have and give you actionable first steps to get started on your home buying journey.

No matter what that looks like for you.         

Down Payments

First off, you don’t need 20% down to purchase a home.

You can purchase a home as a first-time buyer with 3 to 3.5% down. Also, there are programs available that will cover some or all of the required down payment costs for you.

Many first-time buyers are surprised to hear that down payment is not the only cost when buying a home. There are various other fees for the buyer that make up your closing costs, typically another 3-5%. With the right team and market conditions you may be able to negotiate with the seller to cover some or all of these costs as well. In those cases, you may be able to move into your new home with less money out of pocket than moving into a rental.

Credit Scores

Many worry they don’t have good enough credit to purchase a home, but there are programs available for borrowers with credit scores in the 500’s. However, even if your credit is holding you back right now, by making specific goals and forming targeted strategies you can gain the motivation and direction needed to make the improvements necessary. A trusted mortgage advisor is here to be part of your team and build you up for success not just to rush you through the purchase process.

Don’t let the process intimidate you!         

Understandably, it can be very scary to take on a higher payment. However, if you take a wider view, it can be comforting to know that as the average rent payments increase, they usually catch up to locked-in mortgage payments within the first 5-7 years. Not to mention every payment went to pay your mortgage and build your equity, not your landlords.

It may or may not be the right time for you to buy, but it’s definitely the right time for you to formulate a plan and know what your options are.

It’s as easy as one, two, three:

#1 If you don’t know one already, search for a local mortgage advisor and look for great reviews or ask for recommendations from friends and family. Get a number and call them. Good work!

#2 Take some time to visit with them and make sure they are really interested in your plans and goals. If you feel like they are a good fit and you like brainstorming with them, then have them send you an application.

#3Filling out the application should only take about 15-20 minutes. It isn’t as hard as people build it up to be in their heads. It’s simple questions about you, what you have done for work and where you have lived over the last two years. You will need basic documents such as your last two months of paystubs, last two months of bank statements and last two years of W2’s.

Now, the hard part is over! You have started the process and it’s time to brainstorm with your team. You will either get a pre-approval and start looking at homes right away or you will identify missing pieces and develop a plan with specific timelines to fill in those missing pieces. Congratulations, you are on your way to becoming a homeowner!

"The future starts today, not tomorrow."

                                                                       - Pope John Paul 11     

A Trusted Local Resource

Highly recommended by 

Lauren Gurske Insurance Agency!

Buying your first home can feel overwhelming, but the right guidance makes all the difference.

Mandy is someone we confidently recommend. She’s genuine, incredibly knowledgeable, and takes the time to walk you through everything so you actually feel comfortable and informed. She’s also thoughtful, easy to talk to, and does an amazing job of making the process feel manageable.

She’s helped members of our team purchase their own homes, along with several of our close friends. We’ve consistently seen the level of care she brings to each experience, and it’s why we feel so confident pointing people her way.

Whether you’re ready to move forward or just starting to think about the possibility, we recommend reaching out to Mandy. She’ll talk things through with you and help you get a clear understanding of your options. It’s a conversation you won’t regret.