Tips for First Time Home Buyer Loan Borrowers

Apply for a Loan First, then Search for Your New Home

Many first-time home buyers make the mistake of looking and choosing homes before contacting a broker. Unfortunately, the current demand is too high while the housing inventory is tight. As a result, you may lose the property of your dreams without a home loan pre approval. So, before you end up disappointed, prove yourself as a serious buyer by getting preapproved for a loan.

Spend Your Savings Wisely When Buying a Mortgage

When buying a home mortgage, you may be tempted to spend all or most of your savings on down payment and closing costs to avoid paying mortgage insurance. While this can reduce your monthly payment, you’ll be putting yourself at the risk of depleting your emergency savings. Unless you have three to six months of living expenses saved, don’t make a large down payment from your savings.

Maintain or Even Try Improving Your Credit

Even FHA loan providers will pull your credit reports regularly to make sure nothing has changed in your finances before closing. If any new loans or credit card accounts appear on your credit report, this can jeopardize your final loan approval. So, until closing day, avoid getting a new credit card or loan, or making any large purchase on your current credit accounts. Instead, pay your bills in full on time and pay off any existing balances.

Never Pass on a Home Inspection

After buying a home mortgage and finalizing a property, make sure to pay for the optional home inspection service. That way, you can thoroughly assess the condition of your new home and avoid spending thousands of dollars on fixing issues around the property. The last thing you need is to be burdened by additional costs along with first-time home buyer loan repayments.

Need more tips and advice? Contact a home loan broker with your questions. In addition to helping you get online mortgage pre approval, they can put your mind at ease and educate you on home ownership.

Resource By: https://www.prlog.org/12785015-tips-for-first-time-home-buyer-loan-borrowers.html