What To Know Before Applying For A Mortgage
If you are ready to buy a house for the first time, you are likely beginning to research your options when it comes to mortgages. Keep in mind that while it might be as simple as going into your closest bank, there are a variety of different options out there, including many different loan programs who can assist first-time or low-income buyers. If you are looking to submit your first application with local mortgage lenders, here are some tips that might help.
Know Your Own History
The very first thing every potential new homeowner should do before applying for a mortgage is run a credit check on themselves. If there's something inaccurate on your report or something just plain ugly from the past that is still impacting your credit score, you should make sure you find out about it before the potential lender does. In some cases, it might be possible to either fix the inaccuracy or at least try to improve your score before you go forward with your application.
Some Lenders Offer Loan Programs
Many mortgage lenders today offer special programs that could prove advantageous to you. You could get additional assistance for buying a home, like money up front for the down payment or additional help with closing costs. Some mortgage lenders work directly with groups like the Federal Housing Administration to help out first-time buyers. What this means is that even if you don't have good enough credit to get a mortgage all on your own, you might be able to enter a loan program which will eventually lead to you getting a mortgage after you meet certain criteria. More and more new homeowners today are taking advantage of these special programs so don't be afraid to ask around and see what is available.
If you know you have relatively good credit, don't be afraid to shop around. Different mortgage lenders offer different deals during different times of the year. You may be able to find a better APR or fewer fees if you are willing to be patient and search for the best deal.
Buying a home for the first time can be a daunting process and getting approval for the mortgage is often one of the most complex parts of all. But if you do your homework in advance and go into the situation with your credit report cleared up and your eyes set on one or more possible loan programs, there's no reason why you can't soon be the owner of your very own home.