www.homeloanlearningcenter.com
Getting Started
Many people don’t consider buying a home because
they’re afraid they can’t afford it. But for most people,
homeownership is within reach — especially with special
programs for first-time home buyers. In fact, for many,
homeownership is as affordable as renting.
Know Your Finances
There is no substitute for being prepared, and that means
having a real budget. Be honest. Be realistic. Know how
much is coming in every month — and how much is going
out. It will not only help you but also help professionals
like your lender do the best they can for you.
Choose a Lender Before
You Shop for a Home
Mortgages are complicated financial transactions,
but lenders are experienced in explaining the ins and
outs of home loans to buyers. Here’s what a lender
will do for you, in addition to lending you money:
• Help you determine just how much house
you can afford
• Identify the type of mortgage that meets
your specific financial needs
If you choose your lender early in the process, you’ll
already have a working relationship when it comes time
to apply for your mortgage. There’s nothing worse than
falling in love with a house you can’t afford — unless
it’s bypassing a house you could have afforded.
That’s why it is important for you to have a good idea
how much house you can afford. Most people can’t do
that alone. If you work with a lender before you decide on
a home, you’ll know whether you qualify for a mortgage
large enough to finance the home you want — and if you
don’t qualify, you’ll know what steps to take to get you
there in the near future.
Which Mortgage Is Right for You?
Many factors can and should influence your selection of
a mortgage. As you read about the mortgages that are
available and discuss them with your lender, keep the
following five factors in mind:
• Your current financial situation and resources
• How you expect your finances to change in the future
• How long you intend to keep the home you’re buying
• How comfortable y