3 Mortgage Tips for First Time Home Buyers

If you are a first-time home buyer actively searching for your first home, or if you plan to buy your first home in the future, there's no doubt that you have questions about the mortgage process and how you can be prepared for it! 

Check out our 3 BEST tips to help prepare first-time home buyers for a smooth mortgage process:

T.O.M. TIP #1: Know what you can afford BEFORE shopping for a home

WHY?

Knowing how much house you can afford BEFORE you begin shopping sounds like a "no-brainer", right? Well, you may be surprised to learn that many first-time home buyers skip this step! To help save time and keep you focused on your home buying goals, its important to know what you can afford. By doing so, you are able to narrow down your home search to options that fit your budget. This will also keep you from the disappointment that comes from finding a home that is out of your price range.

HOW?

To find out how much house you can afford, you should pre-qualify for a mortgage. Whenever you pre-qualify, you will be asked to answer questions related to your your income, debts, and assets. Once a mortgage loan officer reviews this information, they will be able to provide an estimated amount that you can afford based on your financial situation. (Pre-qualifying for a mortgage is not the same as applying for a mortgage although you will be asked to provide similar information for both.) 

To get started with your pre-qualification online, click here!

T.O.M. TIP #2: Gather important documents ahead of time

WHY?

During the home buying process, quite a few documents are needed to qualify you for a mortgage. Some of these documents date back to the previous two years  while others show financial information from the most recent 30 days. Knowing which documents you will need and gathering them together ahead of time will keep you organized and help prevent a delay in your mortgage process.

HOW?

In general, you will need to have w-2 forms, pay check stubs, proof of income, bank statements, and loan balances from all lenders. We recommend speaking with with a loan officer to find out which documents you will need to provide based on your financial situation. For a FREE printable checklist of items that will be requested when you begin a loan application, as well as a list of helpful "do's and don'ts" for the mortgage process, click here! You can also take a look at the list below:

T.O.M. TIP #3: Find out if you qualify for a special loan program

WHY?

Did you know that home loan programs offered through HUD, FHA, and VA may be able to help you better afford a mortgage? There are also home buying programs specifically created to assist first time home buyers. For example, Mortgage Credit Certificates (MCCs) offer qualified home buyers an annual tax credit of up to $2,000 per year just for owning their home. 

How does a Mortgage Credit Certificate work? 

A MCC reduces the amount of federal income tax that you pay each year making it easier to qualify for a mortgage loan and maintain a monthly mortgage payment. Unlike tax deductions, which reduce the portion of your income that is taxed, MCCs are tax credits. They reduce the final amount of taxes that you owe each year. (It is important to note that borrowers must meet certain criteria in order to be eligible for a Mortgage Credit Certificate.) 

HOW?

Remember, the best way to find out if you qualify for a special type of loan or home buying program is to contact our office and speak with a loan officer. Our mortgage professionals will take the time to discuss and understand your financial goals in order to help you select a loan program that fits your situation. 

Our loan officers are available by phone, email and video chat to help answer any questions you might have as a first-time home buyer. For more information on how you can contact our team, or if you would like to send us a message, click here.

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www.TrinityOaksMortgage.com  |  469.552.5600  | 204A North I-35E, Red Oak, TX 75154  | NMLS# 1443326