1. Know Your Price Range
Long before you look for your perfect home, you need to know what, exactly, you can afford. The easiest way to do this is by getting pre-approved or pre-qualified for a home loan. Consider your budget, how easily you could make monthly payments, and factor in unexpected costs, like moving, repairs, and closing fees.
2. Research Your Market
Signing a mortgage is a huge financial decision, and you need to know your market to ensure you’ve found the best loan. Decide between a flat-rate and adjustable-rate mortgage by looking at interest rate trends in recent years. Find the best lender by looking at various mortgage lenders to gather a better feel for the process and fees.
3. Clean Up Your Credit
Learn your credit score, and take the right steps to make it stronger. You’ll receive better rates with a stronger credit score, so look for discrepancies, line items to dispute, and any outstanding debts you can pay off. A great credit score is critical to obtaining a great mortgage.
4. Know Your Lender
Before you fill out your loan application and submit your credit report, know what, exactly, your mortgage lender will be looking for. This can vary, so talk to your lender and tailor your application to him or her. You must always be 100% honest with your application, but realize some lenders will focus on different sections. Ensure your employment record, proof of income, and financial resources meet your lenders’ standards.
5. Ask for Help
The mortgage lending process is complicated, especially for first time home buyers. If a section of the application seems confusing, ask for help. Your lender will be able to answer many questions and clarify the process. Various non-profits and community resources exist, too, to assist you. Don’t be afraid to take advantage of them, if you need!
Whether you’re a first-time home buyer or have been through the process before, we want to help you obtain a great mortgage. We’re happy to assist you to purchase, refinance, or learn more about mortgage rates. Simply fill out our Fast Response form or give us a call at 855-300-4339.