Whether you are already in the process of getting your first home mortgage or are still taking it under consideration, you have probably heard of the many problems that the entire work ensues. Aside from the money and savings involved, there is always the alarming concern of having your application denied.
As a first time mortgage would-be owner, there are definitely some caveats that you need to prepare yourselves for in order to sheath yourself from the verdict of foreclosure or worst, rejection even before you get your toe in your dream home. To help you get you establish a better chance at getting your first home mortgage, here are some useful tips to get you through the ordeal.
1. Make sure that your financial status isn’t showing any signs of deliberate bankruptcy.
This is the most influential factor that determines the approval of your mortgage loan request because in the final analysis of things, lenders are still looking for borrowers who have the ability to make the monthly mortgage payments. They usually check borrowers’ account balances, monthly expenses and payments and the overall financial situation to assess inherent risks in the mortgage deal.
Knowing this, you should be able to fix your money situation right before batting for a mortgage loan. You can do this by gathering all the necessary papers needed like credit card reports, certificate of employment, proof of income, breakdown of monthly expenses and such. Likewise, be sure to settle any negative credit with the bank before submitting your financial proofs to your lender if you want to get your first home mortgage.
2. Select a home that fits your financial condition.
Others would tell you to select a home you want to buy first and then mind about your ability to pay for it later. However, many homeowners who suffered a property pullout learned a little too late that getting a home beyond their means is like orchestrating a situation that leads to foreclosure. To avoid such a tragic mortgage fate, be sure that the house you intend to buy fits the bill of your finances. You may not be able to get the three-story house of your dreams, but at least, you would be sure that at the end of the mortgage term, you have a house that you can legally call your own.
3. Look for a good mortgage or financial expert that could process the mortgage loan for you.
DIY seems to be all the rage this year simply because money flow is not hefty due to the recession. However, there are times when you need to draw the line between being stingy and being a wise spender. Hiring the service of a financial and mortgage expert to process the papers for you is definitely worth the money. Aside from the fact that you would save time and effort in fixing all the papers you need, you will also benefit from the sound advice that only an expert could give.
However, don’t just trust anyone who claims to know every nook and cranny of mortgage loans. When considering hiring a mortgage consultant, what matters most is always the output of his work. Try looking at his credentials, the deals he was able to close for clients and the professional culture he adheres to. The best ones in the field would usually give you a reference of the deals they have closed. Make a background check of his work with other clients and see for yourself whether he is worthy of the money you are willing to pay.
Be sure to put the aforementioned things in mind when processing a mortgage loan. These are the top considerations you should put premium focus on to avoid future foreclosure worries and nagging possibilities of rejections from lenders. When all things work to yours and your lender’s advantage, your first home mortgage is not far from reach.
