How to Apply for a First Time Home Loan
Many first-time buyers are overwhelmed by the process of purchasing a home and obtaining a mortgage. However, armed with a few pieces of information, a first-time home buyer can find the process to be easier than expected. Come prepared to a meeting with a mortgage loan officer, and you will be welcomed with open arms. Here are a few tips on how to apply for a first-time home loan.
Other People Are Reading
Instructions
-
-
1
Check your credit before applying for a mortgage. Use a free service, such as AnnualCreditReport.com, to make sure that there are no errors on your credit report. You will be asked to provide your full legal name, Social Security number, date of birth and credit card information. Checking for errors will ensure that you have the highest possible credit score going into the process, and that you will get the best possible rates.
-
2
Save up funds for a down payment. Some states and areas have first-time home buyer grants to help you with this process. Ask your mortgage lender about available programs before securing financing. If not, you will need at least 3.5 percent of the sales price as a down payment to secure FHA financing. There are very few 100 percent financing options left.
-
-
3
Fill out an application with the mortgage lender. Make sure to bring the following: two months of bank statements (all pages), two months of pay stubs, two years of tax returns and any child-support or alimony decrees. You will be asked to provide your full legal name, Social Security number, current address and two years of work history. Additionally, you will have to prove your funds for the down payment, from the bank statements you bring with you.
-
4
Bring your checkbook for the application process. You ghave to pay an application fee and a fee for an appraisal before closing on the loan.
-
1
Tips & Warnings
Be in constant communication with your loan officer. He might need more information from you during the process, and the faster you get the information to him, the faster you will be able to close your mortgage.
Do not let this process overwhelm you. Ask questions as needed. Remember that if you are not getting the help you need, there are several other mortgage lenders out there, ready and willing to have a chance to secure financing for you.
