Qualifying for your first mortgage
Purchasing your first home can be a very rewarding experience. Everyone looks forward to owning their own home at some point in their lives, and doing so requires that you that you are prepared and qualified. Buying a home is one the largest purchases that most of us will ever make and the decision to do so should not be taken lightly.
If owning a home is a dream of yours then you’ll have to get ready and that means knowing what it takes to qualify for your first mortgage. Here’s a checklist to help you plan ahead and guide you on your way to home ownership.
Establish a budget – Purchasing a home can be a very emotional experience, one that can sometimes cloud even the most responsible person’s judgment regarding what they can and can not afford. Creating a budget at least a year in advance of purchasing a home that is reflective of what you anticipate your mortgage to be along with your other monthly bills, will allow you to see first hand what you really can afford and allow you to make changes as you go along. It’s better to do this beforehand than to find yourself in your home and struggling to keep up with the payments.
Review and clean up your credit – Take a look at your credit. Don’t assume that just because you’ve always managed to pay your bills on time that your credit reflects this. Mistakes are made all the time on credit reports and waiting until you’re ready to purchase a home to look for them can place you in a precarious position. If you know your credit needs work then contact the creditors and make arrangements with them to get those blemishes cleared.
Save, save, and then save some more – The more money you can save, the less money you’ll have to borrow for your first mortgage and that makes you a more attractive borrower to mortgage lenders. You should also save money so that you are able to address any emergencies that may arise during the home buying process that may require additional money.
Find a reputable loan company – A reputable mortgage broker is a must when getting your first mortgage. You’ll need the help of a lending company that you can count on to provide you sound information, advice, and loan options. Before beginning to work with any lending company, verify their lending credentials, reputation, and history of satisfaction amongst their clients.
Qualifying for your first mortgage should be a memorable experience, not a painful one.