Mortgage 101 – How to Get Your First Mortgage?

How to Get Your First Mortgage

A mortgage will let you purchase your first home securely and easily. This is why most first-time homebuyers look for mortgage prospects before they even scour the community or city for the best homes. It is easy to secure a mortgage if you have:

  • Good credit history – this means having a stellar credit score provided by credit bureaus. Credit bureaus such as Transunion, Equifax and Experian provide sound credit reports that applicants need to apply for a mortgage or loan.

  • Good income – you need to be employed for a certain number of years and should earn a certain amount of money to be able to qualify for a mortgage. Different lending companies may have different income requirements for borrowers.

  • Good financial background – this can be evidenced by a healthy bank account, an active checking account, etc.

There’s a lot to think about when you are getting your first mortgage. Foremost, secure a latest copy of your credit report. Be sure to check what’s in your credit report before you waste your time applying for mortgage. You have to be sure so take time to get a copy from the three credit bureaus.

  1. Talk to a mortgage officer before you house-hunt. A mortgage officer will be able to help you with any credit problems and help you solve these problems before you start searching for “dream properties.”

  2. Reduce debt-to-income ratio. Even before you visit a mortgage officer, pay off as much of your debts. You are more likely to qualify for a good mortgage if you manage to pay off most of your loans. Some lenders may also require a lower debt-to-income ratio as well.

  3. Consolidate or refinance loans such as student loans. Talk to a loan officer if you cannot pay off student loans. This may be consolidated or a loan officer can even stretch loan payments just to help you purchase your new home.

  4. A good work history helps. Most people plan years ahead before they purchase their new home through a mortgage. Try to maintain a good work history so you will be able to qualify for a mortgage; this may be one of the criteria that your lender is considering for approving your loan.

  5. Talk to a variety of lenders or read online reviews of lenders that could help you out. Take your time and talk to around 4 lenders and decide which offers the best lending product or service.

  6. Once you’ve found your lender, visit their local office to find out the best loan package that suits your needs.

If you are after an FHA mortgage, houses must meet certain requirements. Homes should also be insurable and should meet standards for home conditions as well. A mortgage company may partner with a real estate agency to provide efficient and complete services to customers.

 

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