A First-Time Home Buyers Guide To Getting Your Mortgage

For a first time home buyer, it is a thrilling experience to search for a place that feels right. At the same time, it could also be nerve-wracking to settle on the perfect house for you. Using a real estate agent can help for some and after deciding whether to use one or not, the next step after finding your new production home is applying for a mortgage.

But for a first home buyer, it could be overwhelming to know about what goes into the process of getting your mortgage loan. So, read the below to get a grasp of what you have to do before pulling the trigger.

Set Up A Meeting With a Mortgage Lender

Meet a mortgage lender to guide you through the home loan process. Actually, you can start this step even before you select your dream home. This will give you an in-depth understanding of what you need versus what you might get approval for and your credit.

Scheduling a meeting with your mortgage lender can help you as you learn from the various types of mortgages and their requirements.

You have 1) FHA and Conventional loan, or 2) Fixed-Rate and 3) Adjustable Rate as the options. These vary in a number of aspects like your down payment. For instance, an FHA loan accepts a  3.5%  down payment, whereas a Conventional loan will need 5% down, but both require MIP (mortgage insurance you pay upfront).

Decide On What You Can Afford Comfortably

As a 1st time home buyer, you will be looking into all possible homes that can match up with your tastes. But it is vital that you make a practical assessment of your finances and determine your budget.

Your lender might inform you of the first time home buyer programs you can get pre-approved for. However, you need to consider the following basic numbers to decide what you can afford:

  1. Your Credit Score
  2. The total monthly debts that appear on your credit reports like auto loans, students loans, credit cards and others.
  3. Your monthly gross income
  4. Which monthly mortgage payment works best towards your budget

After deciding on the amount you are comfortable with, it’s time to move forward with your new home.

U R Home Texas offers the possibility to start with a deposit of $2,000 dollars (that will be credited towards your mortgage down payment) to acquire your home and does not require construction loans to move forward with your new build. Avoiding a construction loan avoids those interest payments during the building process and avoids the client from having to deal with two closings costs. Allowing clients to move forward with a new build and refrain from paying those empty fees (Construction Loans).


Qualify For A Pre-Approval

For your mortgage approval, you need to submit proper documentation. Your lender produces the list of documents required to submit, these usually include tax returns and employment history. So, be organized and efficiently provide the needed documentation in order to get pre-approved.

These will help determine the amount you might qualify to get as your loan, which might differ from the amount you decided you can pay comfortably. Although it is non-binding, the copy of this pre-approval letter assures the seller that you are a qualified buyer.

Get Quotes From Multiple Lenders

Your best bet for getting your first mortgage in a smooth process is to ask around. Get referrals from friends, family, and colleagues. Consulting with multiple lenders will give plenty of choices as the interest rates and closing fees differ for each lender. Get quotes from experienced professionals who can help you throughout the mortgage process and find one that can be worthy of the extra investment.

Most of all, real estate transactions will be overseen by many professionals like lenders, banks, brokerages, and title companies and hence may see some occasional hiccups. In order to close the deal on your new production home on time, act with prudence and communicate openly with your lender.

For over 50 years, U R Home Texas has been providing South Texas locations residents with top-quality modeled home construction. U R Home Texas also provides support throughout the whole home buying process, including mortgage, getting pre-approved and being with you all the way throughout the home buying, designing and building process. Whether it’s your first home, or an investment property, with UR Homes Texas you can be sure you’ve made the right decision.

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