Trying to get everything organized for a home purchase can be overwhelming for any new buyer. Making sure you have all the right documentation as well as the right amount of money saved can be difficult. So, to provide some assistance in the home buying process, Matthew Campbell with American Financial Network, Inc. has listed a first-time home buyer checklist to help you obtain your first Tustin mortgage.
Check Your Credit Score
Your credit score is one of the main factors in deciding what type of loans you will qualify for. It also determines what type of rates you will receive on your mortgage. Therefore, try avoiding opening additional lines of credit until after your loan has been finalized. Also, pay off as much high-interest debt as possible, to help raise your score.
Have Enough Savings
Making sure you have the appropriate amount of savings before you begin the Tustin mortgage application for any new buyers. Save as much as you can so you can pay at least 20% of your down payment. If you pay less than 20%, you will be required to obtain private mortgage insurance (PMI). This is an additional fee you will have to pay, which only protects the lender in case you were to default on your mortgage.
Also, be sure and have enough money saved up so you can afford all the additional closing costs, such as title insurance, lawyer fees, escrow fees, appraisal costs, and origination fees.
Getting pre-approved can help save you time when shopping in the residential market because it lets you know what price range you can afford. Your mortgage lender will review your finances and run a credit check to see what your affordability is. Pre-approval also gives you more credibility with sellers, which means you get more negotiation power.
For more information on our first-time home buyer checklist or to begin your Tustin mortgage application, please contact Matthew Campbell at 714-241-2326.