Tips To Help You Get Your First Mortgage
Posted on: 10 August 2017
Buying your first home is an exciting time, however, the process can be quite intimidating. Unless you have enough cash to pay for a home, your dreams hinge on getting approved for a mortgage. Here are a few tips for getting your first mortgage.
Talk To Mortgage Companies Before Looking At Houses
You may need to shop around and find a mortgage company with loan terms you're comfortable with. You may even have to go to more than one company to find a loan you qualify for. It's best to get a pre-approval for a mortgage before you even begin looking at homes so you can avoid wasting your time and being disappointed that you can't buy a home you love. Plus, by talking with the lender first, you'll learn exactly how much you can borrow and how much you need to pay out of pocket. This helps you know the price range when you go house hunting.
Don't Change Jobs When House Hunting
You may need steady employment of two years or more to look appealing to a lender depending on your type of employment and your other financial details. If you know you'll be looking to buy a new home in a year or two, be sure to stay in your current job if you can. If you're self-employed, you may need to have proof you've earned self-employment income for a much longer period. The lender needs to make sure you will have regular income to cover the mortgage payment each month.
Save More Cash Than You'll Think You Need
You'll need money for a down payment on the home as well as closing costs. There will also be other fees and insurance. The money adds up quickly and you may be surprised at how much you'll need. The lender also wants to be sure you have enough in savings in case you get laid off or sick and can't work once you get the mortgage. By having enough cash flow and savings on hand, you can start life in your new home without having to scramble to make the first few payments.
Keep Your Credit Clean
You need credit established to qualify for a mortgage because the lender wants to obtain a credit score and see how well you manage debt. Before you apply for your first mortgage, check your score and make sure it is not in the bad or poor range. If it is, you may need to work on your credit before you buy a home. Once you begin the home buying process, avoid putting anything on credit at all until you've closed on your home. This makes sure your score doesn't dip because you're carrying more debt.
When you talk to a mortgage lender, like GRT VA LOAN , you'll find out exactly where you stand. If your income is too low or if you have too much debt, you may want to consider having a co-signer on the loan or buying the home with a partner so you can include another person's financial profile to help you qualify. Just be sure both you and the other person understand the legalities of buying a home together before you do it.
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