Over 2 million people buy a home for the first in the United States annually. Most people work very hard to make their dream of owning a home a reality. Figuring out what you can afford is the first step of the home buying process. Ironing out these financial details is much easier when getting pre-approved for a mortgage.
If you are new to the world of mortgages, working with an experienced and trustworthy lender is important. At Total Lending Concepts, we work hard to provide first-time homebuyers with the mortgage loans they need to make their dreams come true. Keep the following things in mind if you are trying to get your first mortgage.
Know Your Credit Score Beforehand
Before you start the process of applying for a mortgage loan, you have to gather some important information. When trying to assess whether or not you can be approved for a mortgage loan, a lender will consider a variety of different factors. One of the first things a lender will check when trying to assess your creditworthiness is your credit score. Going into this process without an idea of what your credit score is can be disastrous.
The better your credit score is, the easier it will be to get approved for a low-interest mortgage loan. Pulling your credit score for free is easy when doing some online research. Luckily, there are a variety of services dedicated to helping consumer get this information. Using one of these services allows you to properly prepare for the mortgage application experience. A low credit score should be improved before you attempt to apply for a loan. Doing things like paying down your debt can do wonders for your credit score.
Gather The Right Documentation
Adequately preparing for the mortgage application process can help to make this experience less stressful. As you start to meet with the lender of your choice, they will ask for various documents. Instead of being unable to provide this documentation and dragging out the mortgage application process, you need to make a plan of action beforehand.
In most cases, your mortgage lender will want information like:
- Social Security card
- Current tax returns
- Current bank statements
- Your driver’s license
Having this information in hand is crucial when trying to make the mortgage application process easy.
A Good Down Payment Comes in Handy
Overextending yourself financially is a mortgage mistake you need to avoid. If you want to be able to afford a nice house, you need to consider saving a good down payment. Generally, 20% down is the mortgage industry standard. However, there are many loan programs that only require you to put down around 3% of the home’s total value. With the help of an experienced lender, you can find the loan that is right for you and buy the home of your dreams.
If you are ready to buy a home, it is time to let the team at Total Lending Concepts lend you a hand.