By: Andy Clements, Vandalia Branch Manager (NMLS# 1538941)

Buying your first home is exciting, but I know it can also feel like a lot. There are new terms to learn, paperwork to gather and plenty of questions that come up along the way. As a mortgage lender, I’ve worked with a lot of first-time homebuyers, and I’ve found that most people have the same question when they get started: “Where do I even begin?”

The good news is, you don’t have to have everything figured out before you talk to a lender. In fact, I’d encourage you to start that conversation early. Here are a few things I wish every first-time homebuyer knew before applying for a mortgage.

You Don’t Have to Have it All Figured Out

One of the biggest misconceptions I hear is that you need to know exactly what kind of home you want, how much you want to spend and how much you can put down before talking to a lender.

A conversation with a lender is a good place to start, but you don’t need to know all the answers before talking with us. We can look at your financial situation, talk through your goals and help you get a better idea of what might make sense for you. You may be in a better position to buy than you thought, or you may find that there are a few things you want to work on first. Either way, knowing where you stand is helpful.

Your Budget Is More Than Your Mortgage Payment

It’s easy to look at a home’s price and immediately think about whether you can afford the monthly mortgage payment. But there’s more to owning a home than the principal and interest.

Property taxes, homeowners insurance, maintenance and other expenses all become part of the picture. That’s why I always recommend thinking about what monthly payment you’re comfortable with, not just the maximum amount you may qualify for.

Getting pre-qualified for a certain amount doesn’t necessarily mean you need to spend that much.

You May Not Need 20% Down

I still hear people say, “I need 20% down before I can buy a house.” That isn’t always the case.

There are different loan programs and down payment options available depending on your situation. Putting 20% down may be the right choice for some buyers, but it’s not the only way to become a homeowner.

If saving that much is what’s keeping you from having the conversation, I’d encourage you to talk with a lender and find out what options may actually be available to you.

Getting Pre-Qualified Can Make a Big Difference

If you’re serious about buying, getting pre-qualified before you start looking at homes can save you some headaches later.

A pre-approval gives you a better idea of what you can afford and lets you know what price range to focus on. It can also make your offer stronger when you find a home you love.

More importantly, it helps you shop with realistic expectations. I’d much rather have someone understand their budget before they fall in love with a house that doesn’t fit it.

Try Not to Make Major Financial Changes

Once you’re going through the mortgage process, it’s a good idea to keep your finances as steady as possible. That means being careful about taking on new debt, financing a big purchase or making other major financial changes without talking to your lender first. Even something that seems unrelated to your mortgage can sometimes affect the process.

When in doubt, just ask. It’s much easier to have a quick conversation beforehand than to try to fix an issue later.

Ask Questions!

You’re not expected to know everything about mortgages. If you don’t understand something, ask. If a number doesn’t make sense, ask. If you’re not sure what a term means, ask!

Buying a home is a big decision, and you should feel comfortable with the financing side of it. My job as a lender isn’t just to help you get a mortgage – it’s to help you understand what you’re getting into and feel confident in your decision.

If buying a home is something you’ve been thinking about, you don’t have to wait until you’re ready to make an offer to start the conversation. Sometimes the best first step is simply sitting down with a lender and figuring out where you stand.

Visit one of our 7 local branches and get in touch with a lender to get the process started today!