Mortgage 101 for First time buyers

MORTGAGE 101

Buying a home is a big endeavor and for the first time home buyer, can be riddled with pitfalls and confusion. But it doesn't have to be!

Follow our easy tips below to ensure a smooth experience for one of the biggest decisions you will make!

Here are a couple of things to know when you are preparing your finances to purchase a home

Bank Accounts
- Try not to move too much money around, and keep it to only 1-2 accounts if possible. During the loan process, lenders like to see stable assets and may need documentation for large money transfers. To keep things easy, keep those accounts clean and neat!
Credit
- Do not open or apply for any new lines of credit. This includes credit cards, car leases and car loans. Also watch for any rental applications in case you are deciding if you want to rent or own.
Track down your documents
- Be well prepared to provide tax documents, pay stubs and W2s for when you pre-approve and apply for your loan. Timely submission of these items will ensure a smoother approval for your loan.

Get pre-approved for a loan!
- To ensure you aren't wasting your time, make sure to get pre-approved for a loan. This means sending in an application and documentation, having the mortgage broker run your credit and calculate how much you are approved for!
Have you found a trusted real estate agent? Ask your friends and family for recommendations. Reliable real estate agents will help you navigate the market and provide guidance on areas you may not have thought about.

Great! You got an offer accepted, now what? Keep the following in mind as you work towards getting those keys!

Get a recommendation for your escrow company. You are looking for an escrow that is communicative and responsive as there are multiple steps before closing escrow.
Keep a copy of all of your paperwork! There will be a lot, so ensure you have a copy of everything.
Be flexible - There may be some repairs or issues that come up during inspections. Even brand new homes can have issues. Be flexible in negotiating as deals are almost never perfect. Additionally, know your closing date may change. If you are moving out of a rental, keep that in mind before breaking your lease.
DO NOT make large purchases! Opening new credit lines or making large purchases can throw your credit score out of whack. The lender most likely will re-pull your credit before closing to ensure that your liabilities haven't changed.
Remember to celebrate - you just made a huge financial decision! Celebrate your new home!