For many, getting a mortgage is the single most important financial step they will ever take. Therefore you must not take it lightly by any means. In fact, you may find that the easiest step may be finding your dream home. It’s all the other “stuff” that drives people mad.
In these days of instant gratification one may find the whole home buying process to be time consuming and nerve wracking. Frankly, it is. There are many different steps to take. But I’m going to share you with a few tips on how to make applying for your first mortgage a little easier.
Before you even consider buying a house you need to ensure a few things. First, make sure you have solid work history. If you just got a new job with a high income your bank will not loan you a lot of money. You’ll need to be working there for a while. The bank will ask you for paycheck stubs as well as bank account records to look into your earnings history. They love to see stable high income.
You will also need to ensure that you have good credit. Get your free credit report at annualcreditreport.com. You are entitled to look at it every twelve months. If there are any errors make sure you get those fixed before you apply for a home loan.
Making a down payment on your new home is just as important as what interest rate you get or how much your house is worth. The amount of your down payment will directly affect your loan and your life for the next 30 years.
Unless you can afford to pay a house in cash up front you’ll have to deal with the process of getting a mortgage. It does take a while and there are many hoops to jump through. However the process will be much easier with the help of a realtor and a loan officer.
Can You Afford It?
Don’t apply for a mortgage that you cannot afford to pay. It makes zero financial sense to borrow more than you will pay back. If you do not pay back your loan, the bank will foreclose on your house. Not only will you lose your house but they will keep any monies you’ve paid them throughout the life of the loan, including your down payment.
Do you have any other tips we might of missed? what helped you during the mortgage process?