Shopping for a new home should be fun and exciting. But many first-time homebuyers are intimidated by the process, making them more uneasy than happy. The secret to overcoming this anxiety is knowledge. Our real estate agents want your first home search to be a great experience, so they're sharing some basic information to help alleviate your concerns.

• Understand What Lenders Need
  Mortgage companies follow guidelines to determine the creditworthiness of potential buyers. For them to decide whether to loan you the money to buy and the interest rate at which you will pay the money back, they want to know your work and credit histories, how well you manage credit, the assets you own, and the type of property you're buying. 
  
  
• Gather the Necessary Documentation
  Tax returns, proof of additional income such as alimony or child support, credit reports, documentation of debt payments, and bank statements are all part of the package lenders want to see. They will be looking at your credit report, so you want to do that first to see if there are any surprises. If there is information there that is incorrect or can be cleaned up, take care of it as quickly as possible. While building a good credit score normally takes time, a correction can mean a sizeable jump in your score almost immediately. You can change your debt-to-income by paying off outstanding items whenever possible. 
  
  
• Meet With Multiple Lenders
  Don't assume all lenders are the same. Shop for the best offer and when you find it, apply for pre-approval. While not a guarantee, this preliminary letter indicates how much the lender will grant you to purchase the home. It provides a price range and assures sellers and their agents that you are a serious buyer and they aren't wasting their time by accepting your offer.
  
  
• Shop for the Property You Want
  Armed with the knowledge that nothing is standing in the way of your mortgage loan and your price limit, you can shop around for the property you want. With many beautiful Klamath Falls homes for sale, you will surely find the one right. Work with a real estate agent to tour your favorites. Your agent will also guide you through the process, including assisting with inspection arrangements. The agent will also explain contingencies and how they will be managed in your offer. Contingency clauses outline who will be responsible for changes that must be made to the property and how they will affect the terms of the sale. They are your escape route to walk away from an offer you have made if the requirements outlined in the offer aren't met.
  
  
• Understand the Process From Offer to Closing
  Your agent is your best resource for information about each necessary step—who pays for what and how the money is collected, held, and distributed. Closing costs include fees for inspections, recording fees, and more that are over and above your down payment. Your lender will supply you with a document called a closing disclosure that will provide a complete breakdown of the costs, but probably only about three days beforehand. Your real estate agent will be happy to help you estimate these costs in advance so that you're prepared. 

You can learn more about how mortgage loans work in a free class offered by the federal government through the Department of Housing and Urban Development (HUD). Contact us to find the right home.