How to Get a First Time Mortgage
Buying your first home can be an exciting, but also daunting prospect. There are many things you need to take into consideration, from what you can afford to pay monthly, to how much interest you will be charged. In order to get the best deal possible on your first time mortgage you need to be prepared and show knowledge and maturity.
Points to be aware of:
You have a much better chance of getting a first time mortgage of you are honest, both with the bank and with yourself. There is no point in boasting and overestimating what your earnings will be in the future – you are buying in there here and now, so be realistic, not forgetting to take all expenses into consideration.
When you work out how much you are spending at the moment, be sure to allow for unforeseen emergencies – such as a vehicle repair or an unexpectedly large utility bill; it’s always best to have a “miscellaneous” section where you can place a set amount per month to allow for these contingencies.
Don’t forget to check your credit score to avoid any nasty surprises further on down the road. Lenders will use the information on there to decide how much they can lend to you and also how much interest they will charge on your first time mortgage. If you have any debts that you had forgotten about, such as an old credit card bill, pay it off now, before you apply for a mortgage.
Make sure this is the right time for you to buy – don’t get swept away with the excitement of it all. It’s far better to take time to think about things thoroughly now, than regret it later. All the above pointers will show your lender that you are a serious buyer, and are aware of the consequences of obtaining a first time buyers loan.
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The information provided herein has been prepared by a third party company and has been distributed for education purposes only. The positions, strategies or opinions of the author do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.