Preparing Buyers To Purchase A Home

By
Real Estate Mortgage Broker with George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut NMLS #65149

There are many ways that we as professionals in the Real Estate Industry bring value to our clients, but it all begins with Preparing Buyers To Purchase A Home.  Being in the lending side of the industry the value that I bring to that process, starts with my first contact with each and every Borrower, but it does not end there.  I bring value to my Borrowers throughout the whole Mortgage Process, from Pre-Approval, to Applying for a Loan, through the Closing, and Post Closing.

In Preparing Buyers To Purchase A Home I begin with the same process with each and every Borrower.  The first step is to take a look at their credit, income, and available funds.  This first step is the beginning to determining where each Borrower is in the buying process.  Some Borrowers have the credit, income, and funds to begin looking for a home once I have finished going throw the Pre-Approval Process with them, but many need assistance and advice in order to get to that point.  It is these Borrowers that my knowledge of the Lending Industry really becomes of value to them.

In Preparing Buyers To Purchase A Home there is not much that I can do for Borrowers when it comes to the income that they will need to purchase the home of their dreams.  But my experience and knowledge of what is needed to repair credit, and mortgage programs that require the least amount of funds to purchase a home, can be a major value to them.

Many Borrowers come to me wanting to purchase a home, but there credit is not where it needs to be to be approved for a mortgage.  The steps to improve credit are simple, but executing those steps can be challenging.  The three major areas of credit are:

  • Credit History - Do they pay their bills on time?  If not I impress upon them the need to do so, and which delinquencies will affect their ability to purchase the most.  Credit History represents 35% of their credit score
  • Available Credit - The closer a Borrower is to maxing out a credit card the more the negative impact on their credit.  Therefore, I will go over the balance that they have on each and every credit card, and advise them on which ones they need to pay down to produce the quickest, and best improvement on their credit.  Available Credit represent 30% of their credit score.
  • Length of Credit - Here there is very little that they can do, because it is how long a Borrower has had credit.  Length of Credit only comes with time and it represents 12% of their credit score.

In Preparing Buyers To Purchase A Home, my knowledge of the Mortgage Programs that are available to them which require little to no funds, is particularly valuable to First Time Homebuyers who generally have very little money to purchase a home.  By establishing what their buying power is, by looking at their income and debts, I can advise them on what programs can best assist them in achieving the purchase of a home.  It maybe a program that does not require any downpayment, or it maybe one that requires a downpayment, but provides an option to borrow it as well.  If they have enough funds for a loan program that only requires a small downpayment, then I can help them determine how to best use those funds. 

Closing Costs are also a Major issue for most First Time Homebuyers.  Here I can also be of value, by showing them the options that are available to obtain the necessary funds for Closing Costs. 

In Preparing Buyers To Purchase A Home, borrowers need to know the options that are available to them so that they can make informed wise decisions.  My knowledge of the Lending Industry can provide them with the information that they will need not only to make those decisions, but to also be in the position to apply for a mortgage to purchase their dream home

The time that it takes to Prepare A Buyer To Purchase A Home, can vary for a couple of months to more than a year, but whatever the time period I am always available to answer their questions, and provide the information to help them make each decision along the way.


Other Blogs In This Series:

Obtaining A Mortgage

Meeting Conditions On Commitment Letter

The Closing

The Post Closing Years


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Who To Call For Your Mortgage Needs In Connecticut:

George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308  gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Virginia Dean 07/29/2012 05:08 AM
  2. Gabe Sanders 07/30/2012 04:10 AM
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Topic:
Mortgage / Finance
Location:
Connecticut
Groups:
Real Estate Rookie
ActiveRain Contests
Realtors®
Mortgages
1st Time Buyers
Tags:
purchasing a home

Comments 28 New Comment

Rainmaker
128,094
Greg Miller
Warsaw Ind. Home Loans - Conventional, FHA,USDA
Ruoff Home Mortgage

Great information George. It is rewarding when you can meet someone that may not be ready to buy "credit wise", but will listen to what you tell them to do in order to be able to buy & they do those things.

July 29, 2012 09:54 AM
Rainmaker
473,426
Chris and Dick Dovorany
Broker/Associate at Premiere Plus Realty
Homes for Sale in Naples, Bonita Springs and Estero, Florida

It's interesting that in this day and age we still have to drive into the brains of alot of people the importance of not getting credit card debt.  Never know when you might all of a sudden grow up and want to purchase a home.

July 29, 2012 11:10 AM
Rainer
136,144
Brent & Deb Wells
Your Collin County Realtors
RE/MAX Four Corners

Hi George,

Educating our buyers is both a service to them and the sellers in the market. A well educated buyers is a blessing to everyone in the home selling process.

-Brent

July 29, 2012 02:57 PM
Rainmaker
1,430,018
Captain Wayne Rowlett
Florida Real Estate School
Rowlett Real Estate School LLC

Good Morning George,

You have some very good strategies for helping buyers prepare to purchase a home.  Thank you for sharing them.

July 30, 2012 03:36 AM
Rainmaker
434,688
Kathy Stoltman
Ventura County Real Estate Consultant 805-746-1793
Rockwood Realty

I wish all lenders would educate the prospective buyers with information like this.  Thanks for the post.

July 30, 2012 09:42 AM
Ambassador
1,709,458

George Souto

Your Connecticut Mortgage Expert
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