Applying for your first home loan may seem daunting, but it is also exciting. You are on your way to becoming a homeowner. The tips below will help you navigate the process smoothly and save money on your first home purchase.
- Learn about the basics. Before you jump in and apply for your first mortgage, make sure you understand the basic steps, as well as the costs and fees involved.
- Choose a local mortgage company. Your next step is to find a company to work with. Try a local mortgage lender rather than a big bank. A local lender will work through obstacles with you, and offer you a wider range of mortgage types (see below) than most big banks will. In general, they will take more time with you and give you more personal service.
- Look into the different types of mortgages. There isn’t just one type of first time homebuyer loan. There are many types of home loans that may be suitable, depending on your scenario. Some of these include:
- Conventional loans
- FHA loans
- VA loans
- USDA loans
- Jumbo loans
- ITIN loans
During your consultation, we can help you figure out which of these types of mortgages may be suitable for you.
- Get your paperwork in order. You will need documentation to apply for a mortgage. The sooner you start gathering it, the easier the process will be. You will need proof of your income, bank statements, and debt payment records. While you are at it, try to raise your credit score if you can. This will be assessed when you apply for a mortgage.
- Calculate all your homeownership costs. Make sure you understand the full costs to buy a home, including closing costs, the down payment amount, and your expected monthly mortgage costs (principal and interest). Do not forget about home maintenance and repair costs, property taxes, and homeowner’s association fees either. Try to budget for the long term, and do not forget to account for potential changes up or down in your income.
- Get pre-approved. While you are calculating costs, that is a great time to seek mortgage pre-approval. This process will tell you how much you are pre-approved to borrow. Once you know that amount, you will have an easier time focusing your search on homes you can actually afford. The letter you receive will also tell sellers that you are pre-approved for that amount, so they will know you can afford their home if you make an offer. They are much more likely to accept your offer as a result.
Buy Your First Home in Ohio
If you are excited to buy your first home, we can walk you through every step of the process quickly and easily.
To get started, please give us a call at (614) 505-0620 to schedule your consultation. We work with homebuyers and homeowners in Columbus and throughout OH.
