First Time Home Buyers – Tips for Getting Your First Mortgage
In today’s market, your best bet for getting into your dream home as first time home buyers is to make sure you are pre-qualified for the mortgage you will need before you even begin shopping for your new home.
As you start considering the idea of purchasing your first home, take the time to start getting your finances in order for a formal pre-approval. The mortgage process – application, approval, and closing – will require specific documentation, so beginning to gather those documents ahead of time can save you a lot of hassle and wasted time down the line.
For most mortgage applications, you will need a record of your previous 2 years of income, your monthly income, your monthly debt payments, your credit score, and a good idea of what your down payment will be.
Because your credit will be pulled when you apply for your mortgage, and it does have a large impact on whether you will be approved, it is important that you check your credit report as far in advance as you can. The sooner you check your credit, the more time you will have to fix any issues or pay down your outstanding debts before you begin the application process.
You can work on improving your credit by paying off your debts or at least make sure you are making regular, on-time payments and trying to keep your balances as low as possible. You should be aiming for a credit score of at least 700, and anything over 740 will be helpful for obtaining the best rates and fees for your new mortgage.
It is also important that you calculate not only what you can afford but what you can comfortably afford. Keep in mind the additional taxes, fees, pressure washing and premiums that could be attached to the ownership of you home and take those into consideration when you are trying to decide on a loan amount.
This part of the process is best done with an experienced and trustworthy mortgage professional who has years of experience calculating this exact scenario, like us!
We will take the amount you have for your down payment and your current financial information to calculate the best mortgage options for your situation. Once we have helped you choose the right loan and you have received a pre-approval for your first mortgage, you will be all set to find the home of your dreams.
As first time home buyers, the mortgage process can seem stressful, but it doesn’t have to be! We are here to walk you through the process and get you the perfect financing for your needs. Give us a call today for more information on getting your first mortgage!