Making the decision to purchase a home is sure to be one of the largest you will ever finalize, especially as a first time home buyer. The key to being able to be complete this real estate transaction will depend on being able to secure a mortgage loan. This will take the right amount of effort and time on your part to be successful. Getting your first home loan may not be as simple as you think and it's ideal to know some tips to enable you to do so.
Tip #1: Know your credit score
One of the factors that will have a huge amount of influence on your ability to secure a loan will depend on how well you've paid your bills in the past. If you've been on time with each one of your monthly obligations, then you should have a high credit score.
Your lender will take a close look at your credit rating to determine the amount of financial risk you may have. Keep in mind it's ideal to have a score of 660 or higher to be capable of securing your loan.
Tip #2: Get organized
It's ideal to have all of your documentation ready before visiting your lender. There are several things you will need and some of these are listed below:
1. Proof of identification – You will need to show a photo ID, and this could be your driver's license.
2. Verification of wages – It will be necessary to list the amount of money you make annually and provide proof of this amount. Most lenders will accept a W-2 or the previous year's tax return.
3. Bank statement – Being able to show your lender the various types of accounts you have is ideal.
4. Expenses – You will need to provide the amount of your current monthly expenses
Tip #3: Supply references
It's a great idea to speak to some people that you've been professionally involved with in the past and ask if you can use this individual as a reference. Being able to supply positive references to the bank may be helpful in securing the loan.
The benefits of being a homeowner are many, and you're sure to enjoy your investment on a daily basis. Be sure to work diligently to secure the loan to enable you to do so. Taking the time to select a real estate agent to guide you through this process and choose the perfect home can be helpful.