So many people dream of buying their first home and, while the process can be extremely exciting, it can also be quite stressful. If you are in the position to buy your first home in the near future, it is important to be prepared and ensure that you secure a mortgage before you begin looking for homes for sale. Applying for a mortgage as a first time home buyer can be intimidating, but if you know what you are doing, the entire process will be a lot easier. Use the following tips to help you get approved for your first mortgage so you can become a first time home buyer:
Understand Your Credit
Before you apply for a mortgage as a first time home buyer, it is extremely important to have a clear picture of your credit situation. Lenders will carefully review your credit report and look at your credit score when determining whether or not you are a good candidate for a mortgage loan. Look at your credit reports from all credit reporting bureaus, and make sure that there are no mistakes-- errors on a credit report are not completely uncommon, so it is well worth your time to look. Also, find out what your credit score is from each credit reporting bureau-- the better your credit score, the more likely you are to be approved for a mortgage loan, and you will also qualify for a better interest rate.
If you're planning on buying your first home, stop spending as soon as possible. Do not finance a car, and avoid adding any credit card debt. Your debt-to-income ratio will come into play when your mortgage application is reviewed, and taking on new debt can be something that makes you a less desirable mortgage loan candidate. The best thing that you can do is halt spending, and focus on paying down any consumer debt that you may have.
Work with a First Time Home Buyer Specialist
Securing your first mortgage can be exhilarating, scary, stressful, and confusing. Some places have first time home buyer specialists to assist you. When you plan on applying for a mortgage with your bank, credit union, or another reputable lender, it is a good idea to ask to work with a first time home buyer specialist. He or she will answer all of the questions that you may have, and will work closely with you to ensure that you're approved for a mortgage loan so you can fulfill your dream of buying your first home.Share