Home-Buying Must-Knows: The First Home Mortgage

By Ben Borhani

January 13, 2016

Buying a home, especially for first-time buyers, can have many steps involved within the process. From pre-approvals, to finding the right home that fits your budget and needs, the transaction has a lot of factors to take into consideration. One of these aspects is that of the first home mortgage. Given the different types of mortgages, and the fine print that can sometimes be overlooked, first-time homebuyers may find themselves in sticky situation. In order to stay ahead of the game and ensure your first home mortgage is determined properly, check out these steps below to prepare for the transaction ahead of you:

Know Your Credit Score

One of the best things you can do to ensure preparation for buying a home is knowing your credit score. By checking your credit prior to searching for your new home, it will ensure your first home mortgage stays comfortable within your budget.

Be Sure to Keep in Mind all Factors when Identifying Your Budget

Often times, the amount when considering a home mortgage fails to take into account the added costs and fees that apply. Do your research on property tax rates and price of home insurance in your area to make sure that the mortgage you take on does not become overwhelming. To avoid any confusion about your monthly payments, contact us today to get an estimate of a proper budget for you!

Determining the Type of Your First Home Mortgage

Although a real estate professional and the bank itself will ultimately find the proper mortgage type for you, preparing yourself for the type of your first home mortgage should take into consideration questions such as:

The current status of your financial situation
The length that you’re planning on staying in the home
Extent of income stability
Expected future financial situation (throughout the coming few years)

Needed Documentation for Approval

When you finally decide to go to the bank to find a loan for your home mortgage, there is various documentation that is required to do so. This paperwork includes:

W-2 Tax forms from the last two years
Profit & Loss statements, 1099 forms (for business owners*)
Social security numbers
2 year proof of residence history
Bank statements
Proof of homeowner insurance
Purchase agreement for new home

The process of buying a home, especially for first time home-buyers, it can seem overwhelming at times. For those of you looking for a move, contact us today to see how we can provide you with the same excellent service The Mehri & Jerry Team has become renown for! Integrity, Trustworthy, Effective Communication, see how we can apply these ideals for you!