6 First-Time Homebuyer Advice and Tips

Are you currently renting? Are you a first-time homebuyer? Are you concerned the home buying process is going to be difficult?
Buying a house can be daunting. After all - they don't teach "Home Buying 101" in high school or college. But, being prepared and working with a lending expert at Prevail Bank can make all the difference.
It's easy to scroll through Realtor.com or Zillow and dream about owning the perfect house. The magic of HGTV's and DIY network remodeling shows get to us all. But slow down, don’t get swept away until you’ve accomplished the six first-time homebuyer tips provided by Prevail Bank - Eau Claire’s, Mortgage Loan Originator, Andrew Balthazor, NMLS # 2810611.

1. Find the right lender for you

• You will want to choose a lender who is knowledgeable about the products they offer and can serve as an “advisor” during the loan process.  Seeking recommendations on local mortgage lenders from friends and family is a great place to start.

• Find time to visit with them. They should review your income, debts, and assets to help you establish a price range and monthly affordability. (This can be done via phone or email as well.)  After meeting with your lender, you will know where you fit in the home buying process and what to anticipate.

• Ask them about rates, terms, and fees. Carefully compare these details as they will vary, even for the same size loan.
• Buying your first home is exciting, but it can be easy to miss something without proper support. Maintaining communication with your Lender proves beneficial during the loan process.

2. Be ready to provide the information your mortgage lender needs

• Income & Assets:
  • They will want to know how long you have been with your current employer.
  • They’ll review your last two years of W2s and how that compares with what you have earned year to date (paycheck stub).
  • Have ready your statements for each bank and/or investment account for the last two months. 
  • Other income sources that are reliable, IE: child support or maintenance income from a divorce.
  • And if you are self-employed or own more than 25% of a business, they will want to review your personal and business federal tax returns for the last two years with all schedules.
• Debts:
  • What are your current monthly debts that are not reporting on your credit report?
    This includes things like housing/rent, installment loan payments, student loan payments (even if deferred), credit card balances/payments and court ordered payments such as child support.
  • Mortgage lenders will want to review names, account numbers, balances and monthly payments on all current loans and obligations that may not show up on a credit report.
• Credit scores:
  • Do you have established credit, and can you show a history of paying your obligations on time?
• Down Payment:
  • How much do you want to put down as a down-payment toward a home?
  • They will review your last 2 months of bank statements for any account(s) you intend to use for down payment and closing funds.
  • Are you being gifted any of the down payment funds from family?
  • Is qualifying for Down Payment Assistance an option? 

• Prevail Bank has 0% down loan options
• Prevail Bank also has access to a Downpayment Plus Program which can provide up to $10,000 to qualified applicants.

• Concerns:
  • Are there any things that may cause issues - collection accounts, judgements, prior bankruptcies or foreclosures, etc.

3. Discuss and understand the types of home loans offered by your mortgage lender

• It’s beneficial to know the different home loan programs that are available. There are advantages and disadvantages to each of them that depend on your unique needs. 
  • For example - a short-term year loan may have the lowest interest rate, but its monthly mortgage payment might be higher and not within your budget.

•  Closing can vary by loan program.  Your mortgage lender can help you understand what fees and prepaid expenses are required for each of the loan programs you are exploring. 

4. Get pre-qualified for a home loan

• If you’ve got Tips 1 through 3 handled, it’s time to get ahead of the game and work with your Prevail Bank mortgage lender to get pre-qualified. Being pre-qualified shows real estate agents that you’re a serious buyer that is ready to buy their first home.  
  • If there are multiple offers on a home, being pre-qualified could make all the difference in having your offer accepted.
  • Most pre-qualifications last for 3 months, which allows you time to shop for the perfect home.  But don’t worry – if you haven’t found your home your Prevail Bank mortgage lender will work with you to extend that timeframe so you can continue you house hunting with confidence.

5. Choose a local realtor

• You want an agent who will work hard for you. Don’t choose an agent based solely on experience - although experience is good to have, it’s not everything. Your realtor needs to understand what your situation is and what you are looking for in a home.  If it feels awkward or if you feel pressured by a real estate agent, then it isn’t a good fit. Seeking recommendations from friends, family, or even your mortgage lender is a great place to start.
• Focus on neighborhood expertise. A local realtor will help find houses on the market that fit your needs and are in your price range. Google the realtor. Yelp them. Check out their website. We’re lucky to live in the information age, use it!
• And if possible, work with your local realtor and lender together. You can strengthen your position by developing a good rapport between you, your realtor, and your lender.

6. Be patient through your home buying process

• The house search may come together very quickly - or it can take several months. Getting pre-qualified will better prepare you and can help shorten the process.
• If you get frustrated, it is ok to take a break and return to the home buying process when a house you like comes on the market.
• On average, the time from when an offer is accepted to closing is 30 to 45 days.
• Once your offer is accepted the bank will order appraisal and title work.  This is also when you can choose to have a home inspection done.   A home inspection is beneficial as it will tell you more about the house, what maintenance items need completing, and any big red flags or property conditions issues.
• You may be asked to update your paycheck stubs and bank statements as documents become stale-dated. Doing this is a normal part of the process.
• Once everything is approved, you will work with your lender and realtor to schedule the closing date.  At closing, you will sign the necessary documents and pay the down-payment and closing costs in exchange for the keys to your new home!

Congratulations! You are a homeowner!

Meet Mortgage Loan Originator, Andrew Balthazor (NMLS # 2810611)

Andrew has more than 10 years of experience in banking and consumer loans. Customers can expect a personable, knowledgeable, and dedicated professional who brings a positive, “can-do” approach to helping them find the right mortgage solution to meet their individual needs.Originally from Fond du Lac, Wisconsin, Balthazor is a graduate of the University of Wisconsin–Eau Claire with a degree in Economics. He has lived in Eau Claire since 1998 and remains actively involved in the local community.
Outside of work, Andrew enjoys spending time with his significant other, Almeada, and his daughter Bryn, attending her soccer and volleyball events, camping, playing golf and attending Brewers and Packer games.