3 Helpful Tips for First Time Home Buyers
Posted on: 25 March 2022
If you think that you are almost ready to purchase your first home, you are going to want to make sure that you are being as proactive as possible in order to prepare. You do not want to hit any big snags before closing or even right at the closing table. You also want to make sure that you are getting a good deal and an easy home loan approval. Here are some tips to help with all of that:
Get a Copy of Your Credit Reports
It is important to make sure that you are not just getting a copy of your credit report, but that you are also getting a copy from all three of the major reporting agencies. Contact Experian, TransUnion, and Equifax. You should be able to get one free report every year. The reason to get a copy from all three places is that there could be information on one or two that is not on the others. This is concerning, especially if it is information that is inaccurate and it is causing your credit score to drop. Go through everything on your credit reports once you have them so you can quickly file disputes. If the disputes are handled in your favor, you will notice that your credit score will adjust and raise in a few months. Even though the first-time home buyer loan programs are usually lenient in regards to the credit score, you still want for it to be as high as possible.
Get Your Money Documented
You might have ten thousand dollars hidden under your mattress or in a safe in your current residence, but that won't be able to be used as a down payment unless the mortgage company can trace it. If you want approval for a first-time home buyer program, you will want to put all of the money you can into a savings account. Let it sit there until it is time to apply for the loan.
Look For Special Programs
Before applying for a standard mortgage, you are going to want to request information on the first-time home buyer programs. Such programs will generally allow for a smaller down payment, a lower credit score, and a reasonable interest rate. The home taxes and insurance may be included with the payment. It is important to make sure that you are specially requesting this type of program because the loan officer might not realize that you are a first-time home buyer.
Sure, it might seem like there is a lot to do, but you should have no problem doing it. Just get the process started with the request of your credit reports and go from there. Before you know it, you will be moving into your very first home. The path to first-time home ownership is an exciting one (and one that you need to get started on soon).Share