Becoming a first-time home buyer can be an exciting yet stressful and confusing experience. You may have already found your dream home, but you have many details to factor in before applying for your first home loan. The following tips can help you stay focused, and make the process easier.
First Time Home Loans: How to Get Started
Before you apply for a loan, determine how much you can comfortably afford to pay for your new home. You’ll need to consider down payment costs, monthly mortgage payments, insurance and taxes, as well as moving expenses. An online mortgage calculator can help you get a rough idea of what you’ll need, but it’s best to contact a mortgage expert or other finance professional for a more accurate assessment. Your credit history will have a huge impact on your eligibility for a loan, so be sure to check your credit report and have any outdated information or mistakes corrected before you apply. When you’re fully prepared and ready to take the plunge, choose a lender. Your real estate agent may be able to give you information about rates, fees and client satisfaction.
Required Background Information
When you apply for a home loan, you’ll need to have the following information on hand:
– Photo identification and social security number
– Pay stubs from the past three months
– W-2 forms and tax returns from the past two years
– Recent bank statements
– All information about your long-term debts
– Proof of any and all income
– All available information about the home you wish to purchase
What Kind of Loan Do I Need?
As a first-time home buyer, you may have several options. If you don’t have a high income level, federal or state assistance may be available to help you get lower down payment and closing costs and higher loan-to-value rates. Some lenders also offer down payment loans to help you make your first down payment; these can sometimes be combined with conventional first-time loans. If you expect your income to grow within the next few years, a graduated payment loan may be a practical choice. The best way to determine which types of first time home loans can work for you is to discuss the matter with your lender or finance professional.
Don’t let the anxiety of becoming a first-time home buyer spoil your joyous moment; with a little preparation and First Mortgage Solutions on your side, you’ll be mowing your own lawn in no time. Start the loan application process online, or contact First Mortgage Solutions at 855-222-5102.
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