Q: How do you advise first-time homebuyers regarding their budget?

A: My simple answer is — I don’t. My responsibility to buyers is to ensure access to information that will enable them to make the wisest decisions for their specific situation.

With first-time buyers, I explain that home-buying is a process. The first step is to secure financing. This first step involves developing a relationship with a lender. The lender gathers information, including credit scores and employment history. Based on his analysis, the lender suggests a maximum amount for which the buyer appears to qualify. Then the lender can prepare a few scenarios, highlighting the key points of any loan: interest rate, amount required at closing and the estimated monthly payment.

With this information, I offer my opinion based on personal experience as a first-time buyer: First, if a lender indicates you may qualify to buy a $150,000 home, buy one for less so you are not cash-poor. Second, make sure you are comfortable with the lender and that he or she seems

to be a good communicator. I suggest possible lenders based on past client experiences.

Once the buyer is comfortable with the budget, the fun begins: finding the right home.

— Jeff Denning, RE/MAX Associates Northeast, Kingwood 281-361-2234