Six mortgage tips for smart home buyers

So, you’re interested in buying a home? Congratulations! This is a big step in life, so it’s one that you should research thoroughly. The good news is we have some helpful information as you begin the process of getting and using a mortgage.

#1: Check your credit report

Before you look for a mortgage, check your credit report to ensure there are no errors. Most people who have errors didn’t even know they were there — until their application was rejected. Save yourself a lot of anguish and time by checking your credit report first.

#2: Collect required documents

The bank will ask you for documents to assess whether you qualify. Some of the documents the bank may request are:

• W2s
• Paycheck stubs
• Bank statements
• Tax returns
• List of debts
• List of assets

Every lender is different, so you may have to furnish other types of documents, but this list will get you started.

#3: Consider the downpayment

Unless you are a veteran, you will have to pay a downpayment. An FHA loan is best for those who do not have a lot of money for a downpayment or who have some credit issues. One of the best things you can do is plan ahead and put money back for a downpayment. You’ll just be that far ahead on your home equity!

#4: Find the right mortgage lender

You want a mortgage lender with whom you feel comfortable. Getting a mortgage can be stressful. Find a lender who helps you feel less stressed about the process, not more stressed. A good mortgage lender will be open, honest and helpful.

#5: Don’t use all of the approved amount

Sometimes people end up being approved for more than they actually planned to spend and perhaps even more than they can really afford monthly in mortgage payments. Talk to your lender about what the monthly payment will be for a certain amount and then choose a house with that budget. Also, as you are thinking about how much you can afford, don’t forget to allow room for repairs and upkeep in your monthly budget.

#6: Take it slow

Buying a home is exciting, but don’t get in too much of a hurry. Take your time, talk to your lender and then find a house you can afford. It’s all about being a smart home buyer.