For first time home buyers, applying for a mortgage can be overwhelming when they discover all that is involved with the process. The more information buyers provide, the greater their chances are of getting their application approved and into their first home.
This week we run through some tips first time home buyers should know and prepare for to make the mortgage process easier. We asked mortgage expert, Jason Nielubowicz of Judge Realty, to help clarify what you need to prepare before making the big leap. Jason has 20 years experience in mortgage and real estate finance. Here are the top 5 things he suggests doing before applying for a mortgage:
i. Check your credit score: There are several places you can do this but Credit Karma is good place to start. It is a free service that also offers tips to make credit score improvements.
ii. Get your Annual Credit Report: Pull your report from each of the three bureaus: Equifax, TransUnion, and Experian. Take an hour or so to go over each of these independently to search for mistakes, unpaid accounts, and collections. Even though you may pay on time every month, something as simple as using 80% of your available credit on a credit card each month can lower your score significantly.
iii. Get your Realtor and Mortgage Lender involved early: Both can help as you prepare to apply for your mortgage. As you get ready to make your move, Realtors can also keep you aware of developments in the real estate market.
iv. Get your paperwork in order right away: This means locating and organizing your W-2 forms, tax documents, as well as recent bank statements and pay stubs. Have them ready to present to your lender when the time comes. The more organized you are with your paperwork the easier it will be on everyone.
v. Don’t make any other large purchases: While it won’t automatically keep you from getting approved for a mortgage, taking on a new debt of this magnitude may very well make the process more difficult.
For more information or mortgage questions contact Jason at firstname.lastname@example.org or call 912.236.1000.