The First Step to Buying a Home, Getting Pre-Approved

November 1, 2011

The first step to buying a home is qualifying for the loan or getting pre-approved (if you need a few referrals let us know). This step involves getting in contact with an educated and trained mortgage lender to analyze your financial situation and goals in what you can afford to spend in buying a home.  Different loans and lenders have different guidelines and policies that have to be followed and met in order to buy certain homes so it is best you do this first to understand what you are getting into. For example, to buy with an FHA loan, you will need to have a credit score of at least 670 and buy a home as an owner who will homestead the home. To buy a home with a unadventurous loan you will need a min 720 credit score and depending on your finances, your down payment could be anywhere from 5% to 20%. If a business, duplex, or triplex sometimes you will have to make a down payment of 20% owner taken and 25% non owner taken.  If you have questions regarding buying your first Minneapolis or other suburb home, please feel free to contact Jan Worthen.