First time home buyer Mortgage Part 1
For most people, who are under the category of a first time home mortgage
buyer, the experience can be terrifying. The process is to go through all the
steps which are somewhat lengthy, and after all, it is the biggest investment
for most people to walk through. So let us slice the process of a first home
buyer mortgage into smaller pieces where we can easily digest the home
mortgage steps.
Paperwork
Paychecks will provide the bank with a fairly good idea of how much loan you can
get and more likely when you will be able to pay it off. For a hypothetical example,
if your salary is $25,000/year you are likely to be qualified for a home loan of $150,000.
But if your annual salary is $125,000 then you are likely to get a larger amount of loan.
The bank will ask for tax returns to examine your financial position; that way they will
have a good sense of you being able to pay back the loan.
Bank statements are also required to give the bank a way of knowing what kind of
bank accounts beside your checking account you have. Saving accounts can provide
a sense of safety to the lender in different ways; it shows the bank that you have
a buffer of money if things go wrong and also shows the lender that you as an individual
are responsible (gives more reliability perception to the bank) enough by owning
a savings account and contributing to it.
Are you paying child support and/or alimony? If you are, then make sure to include
these documents and provide them. The bank needs to know how much money you
are receiving and what your major expenses are.
Credit cards and bankruptcy records are other documents that you should have
ready and available for the bank to review. If you have had a not so great credit history
or even a bankruptcy but you are recovering by making payments on time and are
consistent then you should be in a good situation for being granted a home mortgage
loan.
People make financial mistakes and bankers understand that but they will be
more willing to lend you money if they can see that you are back on track in terms
of paying off your debts and starting a new life.
Credit cards and bankruptcy records are other documents that you should
have ready and available for the bank to review. If you had a not so great credit
history or even a bankruptcy but you are recovering by making payments on
time and consistent then you should be in a good situation for being granted
a home mortgage loan.
People make financial mistakes and bankers understand that but they will be
more willing to lend you money if they can see that you are back on track in
terms of paying of your debts and starting a new life. Click here for Part 2
Back to Home Page
| 
