Ms. Career Girl Goals: Getting Your First Mortgage
Because it is one of the biggest goals many people have in life, buying your first home can be an intimidating affair. As it is a huge financial move, you will likely need a mortgage.
Before you even start window shopping for a home, you will need to see your chances with a mortgage. If you are in good financial health, with a steady stream of income and good credit, you will more likely be able to secure pre approval for a mortgage. If you are currently tight on cash right now, and are working as a contractor or you are self-employed, you may have to take the time to prepare for the application process ahead of time.
The first two things to do is to know yourself and know your mortgage officer. Get a copy of your credit report so you are conscious of your spending habits. You can also start meeting with a few mortgage officers to understand your standing in the market. Since you will be borrowing money to make your dreams happen, the burden of supplying every evidence that you are capable to manage such a responsibility will come from you. You will need a lot of documentation and a good amount of savings to prove this.
Once you have talked with a mortgage officer, one thing that needs to be kept in mind is to be honest with yourself. Can you handle the loan payments? How much downpayment can you put on a house? Experts would say that 20 percent is the rule of thumb in most cases. Do you have this amount and then some? When buying a house, you shouldn’t just consider the number of bedrooms you want. You should also consider the number of years that you’ll be paying. As you grow your family, more responsibilities will come and preparing for the future now by having a full awareness of these future duties can save your security and the welfare of your loved ones later on in life.
This infographic from http://www.