Check your Credit
Home buyers credit score is among the most important factors when qualifying for a home loan. There are programs that you may utilize to acquire your credit score that may cost you money and require fees. There are even resources such as CreditKarma.com. This tool helps to check your Transunion and Equifax score free of charge. Credit scores isn’t just about paying your bill on time. There are other things that factor into this. The amount of credit your using is relative to your available credit limit, including your utilization ration, it easy to sink your credit score. Have you already damaged your credit score? Don’t get discouraged quite yet, you can always repair damaged credit, however it may take time. It may have been easier to sink it than it will be to make it swim again. Its best to start the repair process 6-12 months prior to shopping.
Evaluate Assets & Liabilities
You’re not in debt and payments are always up to date? How are you spending your money? Do you have excess money left over every month, or are you spending every last penny impulsively? First time home buyers should have a solid idea of what is owed, what’s coming in and where is the money being dispersed. If you don’t have a budget or some idea of your financial layout including bills, finances, savings and other monthly costs…. now would be a great time to do so. A key point is to learn and understand a little more about cash flow and handling it. A good foot in the right direction would be to get a hold of your financial situation.
When applying for mortgages, home buyers should have a paper trail. Typically, mortgage lenders request two recent pay stubs, previous 2 years W-2s Tax Returns and bank statements. They will want to see everything, including the blank ages. Always in the back f your head, think to yourself “is this document useful?” , should I add this to my paper trail. Buying a home can take time, so if you know what you need and have it accessible there will be no back-tracking for documents.
Generally, as a first timer you already have an idea of how much you’re able to spend before. The mortgage lender tells you how much you qualify Calculating debt to income ration and factoring a down payment. You can then see what you can afford monthly and put upfront. Prepare yourself which in the long run will save you time and maybe a little embarrassment. It’s almost like taking an exam; get some rest, be sure to study, and bring 2 pencils. You wouldn’t show up to your final exam unprepared, would you?? Life is one big test so prepare yourself in any possible way.
Figure out your Down payment
It takes some work, dedication to gather what you need. There are programs available that can assist buyers with qualifying incomes based on your situation. It varies with each state and surrounding area but commonly the money comes from home investment partnership programs. Finally speak with some Mortgage lenders when starting the process. Talk with Friends, Co-Workers, Neighbors and Family. It never hurts to get feedback and do your own research before diving in. You will be surprised how much feedback and insight you can get from those who have dealt with this before. Please take the following suggestions and apply them when looking for a home if this is your first time, Good Luck!!