Home Buyer Resources
Information and Resources for First Time Home Buyers
Check Your Credit Report and Score
Before you start applying for loans, check your credit report and score to find any blemishes you may have. From there, you can work on fixing those blemishes to help get you a better interest rate. You can check your credit report for free at www.annualcreditreport.com.
Know the Difference Between Loan Pre-Qualification and Loan Pre-Approval
Loan pre-qualification is a best guess at your housing and loan affordability. Pre-qualification is typically based upon a verbal conversation between potential borrowers and a lender and doesn’t include formal underwriting or supporting documents. A loan pre-qualification is not a commitment to lend. Loan approval comes after a formal underwriting of a potential borrower’s loan request. Loan approval is achieved with a complete mortgage loan application.
What Do Lenders Look for When Determining Loan Eligibility?
Generally lenders look at several things:
- Your income
- Your down payment or equity
- Your credit history or credit score
- Your debt-to-income ratio
- How much money you have saved
- The property you plan to purchase
Be Prepared for Closing Costs
Various Types of Mortgages
- 30 year fixed-rate
- Interest rate never changes
- Lower monthly payment than with shorter-term loans
- Allows for down payments as low as 3.5%
- Credit scores as low as 500 can qualify
- Mortgage insurance premium payments are required
- Popular among first-time homebuyers
- No down payment required
- Upfront VA funding fee required
- No mortgage insurance
- Military-qualified borrowers may qualify
For more information about mortgages, please contact your bank or a financial institution.