Buying your first home can be hectic, especially since you don’t know what to expect. So, we’ve prepared 5 tips that are good for all homebuyers to keep in mind, but we hope they are very valuable to first-time homebuyers.
#1 A Mortgage Loan Originator Will Walk You Through
A mortgage loan originator will help you with all the details and walk you though the process of getting a home mortgage.
First, the loan originator will pre-qualify you for a mortgage, which you will need when working with a real estate agent to looking for a home. Then the originator will help you with everything you need to do to get the mortgage, including processing the application.
Best of all, it typically doesn’t cost any more to use a mortgage loan originator or mortgage broker compared to a retail lender.
#2 Maintain A Clean Credit History
If you are thinking about buying a home, be sure to make all your payments on time and not overextend yourself with credit.
It’s very important that your credit score is as high as possible to qualify for a mortgage and get the best possible mortgage rate.
If you are interested in learning more about credit reports and credit scores, you may be interested in:
- 4 Tips to Raise Your FICO Score to Qualify for a Mortgage and Secure a Better Mortgage Rate
- Missing 1 Mortgage Payment Affects Your Credit Score. Here’s What You Can Do.
- Your Credit Score Affects How Much You’ll Pay for a Mortgage
- Want a better credit score? Here are 5 easy steps.
- Getting Your Credit Report
#3 Gather All The Information And Paperwork
Your mortgage broker will review your finances with you, and let you know everything you will need to apply for a mortgage.
#4 Don’t Lie On Your Application
A mortgage broker works for you, not for a single lending institution with mortgage products offered only by their company. Mortgage brokers scour hundreds of lending sources to find the best possible mortgage product for you.
So be honest with all the information you give your mortgage loan originator, and everything you put on the mortgage application.
Knowing all the applicable details of your financial situation, your mortgage broker can work to match you with the best mortgage product with the best interest rate.
#5 Save For A Healthy Down Payment
You don’t necessarily need a 20% down payment to get a mortgage. As a matter of fact, there are zero down mortgages available.
But generally speaking, your mortgage rate will be lower if your down payment is higher.
Here is some important information about mortgage down payments: