8 Tips on Qualifying For First Mortgages

Introduction

Applying for first  mortgages can be a nerve wracking experience.  Qualifying for first mortgages will be much easier if you research and plan well in advance of the time when you will actually be applying. By taking steps to ensure you are ready, you increase your chances of first mortgages being not only approved, but quickly and with lower rates.

Step 1

Many people make the mistake of applying for first mortgages when they are ready to buy a house. This is something that should be done well in advance. Begin saving money for your down payment a year or more before you feel you will be ready for home ownership. The more money you are able to save toward your down payment, the less your monthly mortgage payments will be.

Step 2

Another thing to think about when you are thinking about first mortgages is your credit report. Do not want until the lender informs you that there are issues. Order your report from the three credit reporting agencies in advance. Be sure there are no errors on the report. Look over any negative marks as well. You want to have your credit score as high as possible when applying for first mortgages.

Step 3

Another mistake first time home buyers might make is thinking that once the down payment is made and they have qualified for first mortgages is that they are done. This is not the case. Be aware that you will have closing costs at the time of your closing and these can be a few thousand dollars. Make sure the you have this money available.

Step 4

Pay down all of your credit card balances. You want to keep them to under half of your total line of credit. Having credit cards charged up to their limit does not look good when you are qualifying for first mortgages. It may give the lender reason to think that you are struggling financially and therefore forced to live on credit.

Step 5

Avoid applying for additional credit cards or loans in the months leading up to applying for first mortgages. You do not want a lot of inquiries showing up on your credit report.  The reason being that you do not want to send up warning signals to lenders about your finances. You also do not want to raise questions about your ability to be able to pay all of your monthly obligations, along with your mortgage payment.

Step 6

First mortgages should be used for the home you need and can afford now. Many times people buy more house than they can reasonably afford. Do make this mistake. You can also upgrade later, if the time comes when you need a larger house or you have more money and can afford something more luxurious.

 

Step 7

Pre qualify for first mortgages before you go out looking at homes. Having a pre qualification letter is often the only way you are able to make an appointment to see homes that are for sale.

Step 8

Compare rates when applying for first mortgages. Not all lenders are the same. Do your homework and choose the one that is going to offer you the best deal.

 

Tips

Take your time and do not rush into signing anything  unless you are sure that you understand the terms and conditions.

Paying a little extra each month when you make your mortgage payment is a smart idea.

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