Thinking about taking out your first mortgage? If so, you may be overwhelmed with what the steps are in order to prepare to take out a mortgage, and how you will know what type of mortgage is best for you. To help ease your stress, you may consider hiring a mortgage loan officer to help you with every step along the way. Mortgage loan officers can help you learn what is best for you, and what programs or mortgage products can work best for your lifestyle.
Check out some of the best ways to prepare to take out your first mortgage and be on your way to
owning your first home.
- Know what you can afford. First and foremost, it is important for you to know exactly what is in
your budget, and what you can and cannot afford. By having a handle on your finances, you will
be able to know how much you should take your mortgage out for. To help determine this, you
can run mortgage calculations online, which will help to compare your income vs. debt ratio.
- Check out special offers for first-time buyers. Did you know that if you are a first-time buyer
you may qualify for special mortgage rates? Learn more about different programs that are
offered so that you can understand what you qualify for!
- Decide what rate you’re looking for. Depending on your goals and your lifestyle, the mortgage
rate that you choose may differ. If you are planning on living in your home for a while, a fixed
mortgage rate might be best for you. If you aren’t sure how long you are planning on staying,
you may want to explore higher-risk loans, which, although sometimes can be unpredictable,
might work better for your lifestyle!
- Save up for a down payment. Your mortgage payments will get lower depending on how much
you are able to put down. Before taking out a mortgage, try to save at least 10-20% of your
down payment. If you cannot afford to put any money down, taking out a mortgage is still
- Collect your documents. Once you are ready to take out your mortgage, make sure you are
prepared with all of the necessary documents you will need, such as tax returns, bank
statements, pay stubs, etc.!