[bittersweet]

DH and I are looking to buy our first home this summer. I think we have some real estate agents here, right...Kate? I am pretty clueless about mortgages. I know you need pre-approval. How soon before buying should we get pre-approved? We will be moved and ready to serious look and make offers in August. I've heard it is a good idea to get multiple quotes from different lenders. Do all the lenders have to pre-approve you? Very confused about the home loan process. If someone could explain that would be great. Thanks!

[sara~b]

I'm a real estate agent! It varies state to state but pre-approval should be done regardless of where you live. I would get pre-approval quotes from at least 3 lenders (ask your friends and family who their lenders are and what they think of them). Gather all of your paystubs for the last 2-3 months, your utility bills, double check your credit report for mistakes, etc. About 30-60 days before you are ready to start seriously home searching start talking to lenders. Try to do as many pre-approvals as you can in a 10 day period so it won't hurt your credit as much. Once you know who will give you the best terms (are you looking for a conventional mortgage/FHA/VA? what's a fair interest rate in your area? Are you looking for 15 or 30 year term? etc) then take your pre-approval and get started searching!

Before you really start I would also sit down and make a list of your must-haves, wants and do NOT wants. Think about things like what school district or neighborhood you desire, how much land you want, fireplaces, number of garages, architecture (two-story? ranch? etc), and whether you want a cul-de-sac, side road, main road, etc. Once you have a list like this and a pre-approval you can really help your realtor choose only homes that fit your needs and budget!

Good luck and have fun!

[bittersweet]

Is it going to be a huge problem if we can't find our old W2s (we have this years, haha)? We've moved several times in the past couple years and I think they might be lost. DH does our taxes and I asked him about them last night. He said he 'thinks they are in a folder somewhere' So I'm guessing that means he has no idea where they are and we probably won't find them.

[Chelnae6]

Sarah,

Being a homeowner of 2 homes I think I know a thing or 2. Go and visit open houses in order to really determine what you want/dont want and need/dont need. Visiting open homes (a hobby) helped me to get a better feel for what I NEEDED in a home and what made me feel comfortable.

When getting a mortgage, dont get anything less than a FIXED mortgage. I had a condo and swear I got jipped with my 80/20 interest only loans. My place now I have a 30 year fixed. If you can, try to qualify for programs that will pay/assist with closing. I've owned 2 homes and was only required to put down a total of $1000 for both combined. But I would recommend having some money to put down if possible, helps with your mortgage payment. Anything less than $5k, keep it, dont put it down b/c it wont help your payments out at all, maybe by about $20. You can take that $5k and buy some furniture and blinds.

I do feel that looking at new homes and open houses PRIOR to looking for a home for yourself can help lessen the stress of buying a home.

Once again... everything Sara said. Will is also a real estate agent.

[A*LOT*OF*HOPE]

Aren't you military?? Wouldn't you qualify for a VA loan??

[bittersweet]

Originally Posted by A*LOT*OF*HOPE

Aren't you military?? Wouldn't you qualify for a VA loan??

I do, but I've heard that if you have 20% to put down, the VA loan isn't the best option. Not sure if this is true or not though. Have you used it?

[*krista*]

You will have to order a copy of your tax records from the government if you don't have them, I believe. You might want to do that now so you don't have to wait on them later! Just give any lender a quick call and see how far back you need to go, most of them are relatively the same.

The general rule is to get your pre-approval once you are ready to get serious, get a realtor, and start looking at houses. It will usually take at least a month to a month and a half from the time you agree to sign a contract with a seller and actually close on the house... and that is only if the seller can move out right away. Factor in that and the time it will take to do your house hunting, and you need at least three months I would say. We searched for houses for at least a month or two before we signed a contract. Maybe that is just us, but we looked at a lot of houses.

[sara~b]

I know that in PA most of our lenders just want the last years taxes or some proof of income (like 6 months of paystubs and bank statements). They basically look at your income and then run your credit check and then give you an amount based on your debt to income ratio. Don't get your pre-approval too early on or your lender may not be willing to give you the same terms as the pre-approval. Also if anything changes in your income or debt between the pre-approval and actual loan, the pre-approval may be void. Other than that I ditto Chelle on checking out houses before you are serious but do it on your own and don't waste a real estate agents time until you're serious.

[IamMom]

Originally Posted by bittersweet

I do, but I've heard that if you have 20% to put down, the VA loan isn't the best option. Not sure if this is true or not though. Have you used it?

Personally if you have the 20% down - I would do that and get a conventional mortgage.....no PMI to pay then....which is generally not tax deductible like the interest is (it is thru 2010 but who knows when it'll go back to the way it was and not be tax deductible).

Are you first time homebuyers? - get in on that $8K credit girl! But hurry.... you need to have a contract (binding) by 4/30/2010 and close by June 30! (as long as your AGI isn't over $225K....but seriously this could be $8,000 in your pocket!