Posted by: Larry Stevens | April 27, 2012

New Article: 5 Ground Rules for Your First Home Mortgage

New Article: 5 Ground Rules for Your First Home Mortgage

A new article has been posted on our blog by Dan Moyle:

5 Ground Rules for Your First Home Mortgage



first home mortgage 5 rulesThe logical initial step in buying your first home is determining whether or not you are financially qualified to purchase a home, and establish a comfortable budget price range that won’t bust the bank or cause you to live for your mortgage payment. That’s called mortgage pre-approval. You also need to understand a few things about the process beyond that. Here are some helpful, practical ground rules for your first home mortgage:


  1. The Good, the Bad, and the Ugly:When you meet with your mortgage lender, make sure that you provide them will all the correct documentation. Don’t withhold any information about your current expenses, debts, past judgments, liens, or credit issues. It’s better to be completely forthright and up front in the beginning, rather than to have something come up unexpectedly in the final hour that adversely affects your ability to buy a home.
  2. Don’t Buy Anything BIG:Be careful not to buy any big ticket items while you are in the process of buying a home, like a new car, a boat, or charging that long-awaited vacation to Vegas on your credit card. Large dollar amount purchases can have a negative impact on your debt-to-income ratio. Even purchases that have extended financing (no payments until next year) can hinder your ability to qualify for a home loan.
  3. Stay within Your Budget:For people getting their first home mortgage, It can be very tempting to wander outside of your established budget to buy a home that has more features or amenities than you can comfortably afford. Recognize, that statistically, most First Time Home Owners are only in their first home for 5 years or less. You can always make desired improvements to your new home over time, as your budget allows.
  4. Explore Your Options:When shopping for your first home mortgage, take time to evaluate all the various types of home loans. A good mortgage bank will be able to suggest a loan product that best suits your income, budget, and home buying goals.
  5. Don’t Go Changing: Mortgage loan underwriters are going to want to see long-term consistency and stability in your employment and banking practices. Don’t change jobs or banks while you are engaged in the home buying process.

By following these basic ground rules for your first home mortgage, you will successfully achieve your first time home buying dreams!

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