The biggest purchase that you will most likely make in your life is your home. If it is your first time buying a home, you may be intimidated by this process. However, if you have the right information, getting a mortgage can be quite painless. Here are tips that will help you qualify for a home loan.
Know your credit score
if you don’t know your credit score, you could be wasting your time. There are different types of loans for different credit scores. Knowing your credit score helps us know which loans you might qualify for. Reviewing your credit history will also help you in the case that you need to repair your credit for any reason. Credit reports will show you exactly where there are any late payments that you may need to correct.
Save for a down payment
Qualifying for a home loan when you have a down payment makes things a lot easier. Traditionally, 20% of the purchase price of a home was required to qualify for a loan. However, new home buyers are now able to get into their first home for anywhere between 5% to 10%. The higher your down payment is the better interest rates and monthly payments will be. For each additional 5% you put down on the house, you will be able to lower your rate. If you are able to put down a substantial amount on your home, this will be the best idea in the long run.
When looking at homes, use our house payment calculator
It can be fun to drive around your favorite neighborhood and look for homes that are on the market. When you find a home that you like, you can find the price and then put it into a house payment calculator. While these calculators may be a little off because of varying interest rates, a mortgage calculator will be able to give you a general idea of what you can expect to pay each month for your house payment. Our calculators are located on our website: TheTuttleGroup.com/mortgage-calculators/
Don’t add dings to your credit during the lending process
One of the easiest ways to be disqualified after being approved for a home loan is failing to pay your bills. While this may seem like a no brainer, it happens more often than you might think. Don’t let any unexpected medical or other bills slide during your excitement for your new home. This could cost you an opportunity that would get you into the home of your dreams.
Put all of your financial documents in order
Once you have set up an appointment with us, we will need to prove your income, show your assets, and provide a profits and loss statement if you own your own business. These are just a few of the many different financial documents that you must show when you are trying to qualify for a loan. Send us an email and we will provide a list of all the documents that you will need specifically in order to better qualify for a loan.
Don’t switch jobs
If you are anticipating any change in your employment in the near future, try to qualify for your loan before you switch jobs. Lending institutions like to see a solid work history when they are giving out money to potential homeowners. If you have been at your current job for an extended period, this will be very beneficial to qualifying for a loan.
These are just a few of the many tips that can help you succeed in qualifying for a loan. Remember, getting a home is easier than you might first think. Don’t continue to throw your money away by renting simply because you are nervous about qualifying for a loan. Use these tips and get into the home you deserve.
