Buying your first home doesn't have to be a terrifying experience. Surprisingly, however, that's how many perspective homeowners view the process. According to Nerdwallet, millennials especially are hesitant to enter into the home buying arena, even though they'd like to become homeowners and see the value of buying over renting. Most feel they don't yet make enough money to foot a monthly mortgage.
But this is where Deer Valley Credit Union gives you an advantage over competing mortgage companies. At DVCU, we'll work with you to find repayment options that fit your budget and your lifestyle so there's no need to put off buying that first home you've been dreaming about.
We've put together a short list of dos and don'ts to help you get approved for your first home loan. Whenever you're ready to take the plunge, this checklist will help get you to the right place.
- Do: Check on the status of your credit. Do this as early as possible in the planning process -- as much as a year in advance if you think there could be negative items impacting your credit score. This will give you time to pay off any neglected debts and have them cleared from your report.
- Don't: Immediately begin buying furniture and accessories once your loan is approved. The powers that be will be checking and re-checking your bank statements and credit card limits throughout the process, so be responsible in your spending during this time.
- Do: Have your down payment ready. Back before the housing market crashed, it was easier to secure a home loan with little or no down payment, but things have changed. To up your chances of getting a home loan today, plan to put down at least 10 percent of the cost of the home.
- Don't: Quit your job. It's important to show how responsible you are when you're applying for a home loan. Lenders want to see a strong, reliable work history coupled with responsible spending before they're ready to commit.
- Do: Have your budget in mind. This means you need to know exactly how much you can afford to spend each month on mortgage payments. A good rule of thumb is to keep your debt to income (including your new mortgage payment) below 45 percent.
Download Your Comprehensive & Printable Home Buying Checklist
If you’re interested in understanding mortgages, how your credit score affects your home buying options and more, download this printable checklist.
Approximately 35 percent of today's homebuyers are first-timers, and there's no reason why you can't be a part of that happy statistic. Ready to begin the pre-approval for a mortgage loan? Start here. Our loan specialists are friendly, knowledgeable and caring. We want to put you in the home of your dreams with as little hassle as possible, and we do that by simplifying the whole experience. You'll enjoy our easy application process and lack of hidden fees as you move forward to this next stage of life.
This article is intended to be a general resource only and is not intended to be nor does it constitute legal advice. Any recommendations are based on opinion only.
Rates, terms and conditions are subject to change and may vary based on creditworthiness, qualifications, and collateral conditions. All loans subject to approval.