First Time Home Buyers in South Lake Tahoe: Part One

November 15th, 2009 categories: First Time Home Buyers, For Buyers, For Sellers, Lake Tahoe Real Estate, South Lake Tahoe, CA, Stateline, NV

SoundbiteblogGood Lenders aren’t just any frog in a pond!

This is inspired by a colleague and friend of ours, Rich Jacobson , who owns the Kitsap County Real Estate Blog in Washington state. His work for the source of this series superb, and with his graces we are retooling it for first time home buyers in our South Lake Tahoe real estate market.

This then is the first in a series of articles focused on helping 1st Time Home Buyers successfully buy a house in South Lake Tahoe. Each time, we’ll focus on key events, or steps if you will, in the South Lake Tahoe home buying process.

Step One: Mortgage Lending and Loan Pre-Approval:mortgage-compass.jpg

The first step in your home-buying adventure is the need to select an experienced mortgage loan specialist. (We have plenty of good choices for you, find one below.)

Before one starts the home-search process, one needs to best understand if one is in the financial position to purchase a house. With that, the price that one can afford for a house will come into exact focus. An experienced South Lake Tahoe mortgage professional will review your current financial status and give you a realistic look if buying a house is a realistic and prudent goal.

Sometimes, outstanding debts should be paid first, or a past credit problem should be addressed. A qualified mortgage loan specialist can help you to formulate a strategic plan for you to qualify for the loan that’s right for you.

After that, your mortgage professional will help select a loan product (yes, there are always various loans to consider) that is best tailored for your specific needs. Years ago, buying a home required a  substantial cash down payment (usually 20%), and that is still the perception with most first time home buyers today.

Now days, though, there are many creative programs available, specifically for 1st Time Buyers. It may be much easier than ever for you to qualify for a home purchase (and that could very well in frequent cases be less than 20%).

Upon verification of your financial information, and the identification of you best particular loan product, your mortagage specialist will then determine a price range to fit within your budget. This will make you home search process much quicker and easier.

At this search stage, you will want your lender to provide you with a loan pre-approval letter. This helps strengthen your negotiating position as a strong, qualified Buyer. Here’s a few helpful suggestions:

  • Identify, interview, and evaluate at least 3 different lending sources. Obtain recommendations from your real estate agent or friends.
  • Ask lots of questions. A trusted resource of ours, Debbie Humphrey, with Guild Mortgage, personifies the 3 key elements of a professional first time buyer loan specialist: 
    — She is knowledgeable and willing to take the time to educate 1st time buyers.
    — She has the ability to empathize with people, understanding their individual needs and issues.
    — She has exactly the right chemistry to create that critical, winning teamwork between the first time Buyer and their mortgage specialist.
  • Use a local lender, particularly here in South Lake Tahoe. It strengthens your position to work with someone with South Lake Tahoe market experience who knows the nuances of this resort market.
    — The local lender can respond quicker to any issues that may arise.
    — The local lender will also better interact with  area agents, title/escrow offices and area appraisers to best expedite and assure your success.
  • The lender who quotes you the best mortgage interest rate is not necessarily the best lender for you. Market knowledge, experience, personality, and a determination to see you succeed are also important factors in selecting the best mortgage pro for you.

Having a knowledgeable mortgage specialist as part of your team will help you to successfully achieve your home-buying adventure! We hope you find this helpful.

The next article in this series, "Find a Great Real Estate Agent", here.

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This entry was posted on Sunday, November 15th, 2009 at 2:14 pm and is filed under First Time Home Buyers, For Buyers, For Sellers, Lake Tahoe Real Estate, South Lake Tahoe, CA, Stateline, NV. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  1. Rich Jacobson said at November 15th, 2009 at 5:31 pm

    Richard: I am truly honored that you would re-tool my series and use it here on Lake Tahoe Real Estate Blog. It’s one of the best compliments I’ve received!

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