The Right Loan
If you are a first time home buyer excited about buying your first home but a little nervous, here are some quick facts for getting your first mortgage. By following some simple guidelines, you can make your first mortgage stress-free and easy. This is also helpful for people who are looking for a new mortgage for their existing home.
Make your first mortgage stress-free and easy.
Decide on a budget. As a first time buyer, you will want your new home to be a paradise, complete with all the luxuries you have dreamed of. However, most first-time home buyers cannot afford their wish-list which can often lead to a waste of time and disappointment. It is always best to decide on a budget in advance and stick to it.
Be realistic and calculate how much home you can actually afford based on your annual household income and current debts. Therefore, based on your income and current debts, calculate the amount which you can borrow to get an exact idea of the price range of homes you should be looking for.
Pay off your debts. These debts include credit card bills, student loans or car loans, or any other high-interest consumer debts. Lenders look at all your debts before approving a loan.
Focus on homes within your budget so you don’t get disappointed or waste your time. Typically, people who are motivated enough to buy a house find one within the first 2 weeks of their search. Others who spend years looking for a house are either not motivated enough to actually buy a home, or they simply do not have the finances to buy what they are looking for.
Gather the required documentation needed to apply for a mortgage in advance to avoid delays later on. Some of the documents that may be required during the process include your employment information, W-2s for the last two years, pay stubs, Federal income tax returns, your bank statements and a list of your current debts.
Follow these guidelines and discuss different types of mortgages with your lender who will also be able to guide you in making your first mortgage as smooth as possible.