Tips for First-Time Home Buyers

Overview of tips for First Time Home Buyers
Building blocks of first time homeownership
  • Order a free credit report AND view your three credit scores
  • Review your credit report and clear up any derogatory accounts
  • Do NOT open any new credit accounts or make any large purchases before/during the loan process
  • Calculate your total monthly bills/liabilities
  • Determine how much you are able to put down
  • If you put down less than 20% you will have to pay mortgage insurance
  • Figure out your DTI and subsequently what you can afford
  • Make sure you have a 12-month verifiable housing history
  • Make sure you have a seasoned asset account with at least 2 months PITI
  • Set aside money for a down payment and closing costs in a verifiable account in advance
  • Decide what loan type or loan program best suits you
  • Get pre-approved for a mortgage and obtain a pre-approval letter
  • Shop around with multiple banks and lenders, not just the one that pre-approved you
  • Compare mortgage rates extensively
  • Lock your mortgage rate when you’re satisfied to ensure it doesn’t increase
  • Get a better understanding of mortgage closing costs o you know what to expect in the way of fees
  • Breathe!

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