As first time home buyers begin to organize their finances in hopes of purchasing property, they should also polish aspects of their professional and personal lives. FHA mortgages can greatly assist consumers along the path to homeownership, but aren’t given to just anyone.
By refining the way your information is presented to lenders, you can appear more attractive to the lending company, and ensure you are granted the mortgage you desire with the payments that best suit you.
Display a good credit history
Making crucial credit mistakes are as easy as forgetting to pay a bill on time, or accruing debt on an old credit card. Before you approach a lending company, obtain a copy of your credit report and double-check to make sure its accurate. If an inaccuracy is included, contact the creditor immediately to have the blemish removed. If all the information is correct, but the score is low, try paying off your next credit card bill early – and in full. These are small steps, but could decide whether or not you’re able to buy your preferred property.
Exhibit stability in your professional life
One of the first aspects of your life that lenders might investigate is your job stability, as they want to ensure you will have continuous income facilitating your payments to them. Many extenuating circumstances can be explained, especially during times of economic downturn, but if you’ve recently jumped from job to job, it might be best to wait some time before submitting your application. If you have demonstrated stability, try to decide whether you will want to stay with your current company for some time. If not, try and make a change before pursuing a mortgage.
Prepare for a large down payment
The more money you are able to put down when closing on a house, the less you will have to pay in the future – which will drive down both the cost and length of your obligation. It is generally believed that putting 20 percent down at the time of purchase is a good measure, so while putting less down is possible, putting a lot of money down could benefit you in the future. Paying more now can help you pay less later.
Getting your personal finances under control is the first step to qualifying for a home loan. Freedom Mortgage offers some of the latest advice on comprehending a fluid housing market from improving your home value to tips on comparing mortgage loan rates.
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