First Time Buyers Mortgage Application Checklist

First Time Buyers Mortgage Application Checklist
If you​ have a​ dream about owning your own home and applying for a​ mortgage then you​ may be a​ bit nervous at​ the​ present moment .​
While having your own home is​ the​ American dream the​ high prices involved can be overwhelming .​
In addition to​ this,​ many lenders will be more concerned with earning a​ profit than with helping you​ find a​ home that matches your income .​
Below are some steps you​ can take to​ properly apply for your first mortgage.
Applying for a​ mortgage used to​ be simple .​
People would compare the​ prices and rates on​ houses they wanted,​ and once the​ found a​ lender they were comfortable with,​ they would make a​ large down payment and then move in​ .​
Today things have changed,​ and going through the​ number of​ options available can be very stressful .​
One thing you​ should do before shopping for a​ house is​ to​ educate yourself.
First Mortgage Application Steps
The first thing you​ will want to​ do is​ look at​ your current income .​
How much do you​ make per year? How secure is​ your job? Remember,​ if​ you​ go about getting a​ mortgage the​ traditional way,​ it​ could take 15 to​ 30 years to​ pay it​ off,​ and if​ you​ get behind on​ your payments,​ you​ could lose your home and have your credit ruined .​
If you​ can't afford a​ home,​ it​ is​ best not to​ move into one until you​ can .​
This will keep you​ from taking on​ debt you​ can't afford.
How Much Can you​ Afford?
If you​ feel that you​ can afford a​ mortgage the​ next thing you​ should decide is​ how much you​ can afford .​
Lenders have a​ tendency to​ offer you​ mortgages which are more than you​ can afford,​ and this is​ important to​ remember .​
In addition to​ the​ cost of​ the​ mortgage itself,​ you​ will have to​ pay taxes,​ insurance and other expenses as​ well .​
These costs should be included in​ your monthly expenses.
Apply Directly Or Via a​ Broker?
When you​ begin looking for a​ mortgage you​ will encounter two types of​ lenders; mortgage brokers and direct lenders .​
The direct lenders are the​ people who have the​ money to​ lend you​ .​
They are ultimately the​ individuals who decide if​ you​ will be approved for a​ home .​
The mortgage broker acts as​ a​ middleman,​ going out and finding direct lenders who can give you​ the​ best deal.
While the​ lenders may have a​ limited number of​ loans available,​ a​ mortgage broker will often have access to​ multiple lenders simultaneously .​
If you​ are looking for a​ specific type of​ mortgage,​ a​ mortgage broker may be better to​ use than a​ direct lender .​
However,​ a​ mortgage broker will charge you​ for their services,​ and this could be a​ certain percentage of​ the​ mortgage loan you​ end up with .​
With the​ rise of​ the​ internet,​ online mortgage brokers can help you​ save money.
Get the​ Paper Work in​ Order
Once you​ have found a​ loan through a​ direct lender or​ mortgage broker the​ next step is​ to​ fill out an​ application .​
There are a​ number of​ things you​ will need to​ fill out on​ the​ application and it​ will help if​ you​ have some supporting documents .​
You will need to​ provide information about your income,​ length of​ employment,​ and your assets .​
They will also want to​ know what other loans or​ credit cards you​ have.
Once this information has been provided,​ the​ lender will look at​ your credit report .​
In addition to​ this,​ they will want to​ see your bank statements and check stubs from your job .​
You may also need to​ show them tax information and data about your insurance .​
If your credit is​ good,​ an​ appraiser will be hired to​ make sure the​ house is​ valued at​ the​ loan amount that will be given to​ you.

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