What to Know When Applying for a Homeowner’s Loan

What to Know When Applying for a Homeowner’s Loan
  • Opening Intro -

    Looking for a First Time Home Buyer Loan can be both frustrating and exhilarating, so it is no wonder that so many people wish they could have as much information as possible, before beginning the application process.

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The good news: there are a number of tips that you can use to increase your chances of securing the funds you need before you apply. As the housing market continues to cool off, it may take more than just a credit score to qualify as a "qualified buyer".

One important thing to keep in mind is that the first time home buyer lenders are not just looking for your credit score. They will also look at your income, employment history, and the type of property you plan to purchase.

By keeping these things in mind, you will be able to maximize your chances of obtaining a loan that best suits your individual needs.

What You Need

The first thing you need to do is gather all of your financial data together; your income, debts, and your credit score. Be sure to keep track of everything from these three areas of your life.

You should be able to write a list detailing all of your current expenses and assets, as well as those things you plan to purchase or add to your current home.

This will give your lender an idea of your current financial situation. Also, make sure that your current bank is included in your list of financial institutions of choice.

Make a Plan

After you have gathered all of this information, speak with a real estate agent or bank official about how your financial situation may affect your chances of qualifying.

For instance, you may have to prove to them that your current job and/or income will remain the same in the next year.

If you have any credit card debt, then make sure you can show them evidence of how much you have paid on each card, how much you currently owe, and what the current balance is.

In addition to all of this, it would also be helpful to take a look at your financial needs. If you are planning on purchasing a new home with a condo unit attached, you will want to know exactly what the monthly payment will be. Do you intend to pay for an entire unit each month, or just a part of it?

Lastly, don’t forget to apply for at least three loans in total before submitting your application for preapproval. This will help your lender to determine just how much money you will be receiving, and how quickly your loan approval process can happen. This will also give you some measure of success, as well as show them that you know what you are asking for in return for the loan.

There are a number of factors that go into determining if you can get the funds you need, but these are just a few of the most important. It is important that you keep in mind that just because you don’t have a high credit score, that doesn’t mean you can’t get approved. If you follow the above guidelines, you should be able to obtain funding in no time.

Find the Lender That Is Right For You

Keep in mind that it isn’t easy being a first time home buyer. However, there are several sources that can be used to improve your chances of getting a home loan and can ensure that you get the money you need to purchase your new home.

Make sure that you stay current on news and events. There are plenty of sources for real estate news in Los Angeles or wherever you may be looking.

other valuable tips:

The first thing you need to do is understand that not everyone who applies for a home loan as a first time home buyer is approved, so don’t get discouraged if you’re turned down. There are lenders out there who are looking for qualified homebuyers every day, and they don’t care whether you have bad credit or no credit. They want to see that you are a good risk in the eyes of the bank.

Finding a good lender to do business with depends on the type of loan you are looking for. You may have to look at a variety of different lenders before you find one that you are happy with.

If you have a stable income and have been employed for some time, then a bank that gives money to people with good credit is probably the best bet. There are also private lenders out there who work with those who have less than stellar credit.

Image Credit: by envato.com

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Consumer Tips reference:

GUIDE: steps in planning a budget

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Categories: Home Financing

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