Being a first time home buyer has never been more confusing and convenient at the same time. The most crucial aspect to home buying, for first time buyers especially, is adequate and thorough preparation. In this month’s blog we discuss a few ways first time home buyers can qualify and get approved for an affordable mortgage at a great, low rate.
Strengthen Your Credit Score
Typically, establishing and strengthening a credit score can take years of effort, however there are several steps you can take to give it an impressively quick boost. You can finesse your credit score today by disputing any damaging errors in your report, keeping credit debts at or below 30% of their limits, making all payments on time, and for some opening a new line of credit can help too. Keep in mind that in addition to analyzing you and your partner’s credit scores, lenders will also consider your income-to-debt obligation ratio.
Save, Save, Save!
The best tip for first time home buyers is to save as much cash for a down payment as possible. The higher the amount put forth the better chances a first time home buyer will get approved with a competitive rate. Plus, the cost of the down payment isn’t the only expense to consider saving for, as there are often significant closing costs and move in expenses involved with home buying as well.
Explore Mortgage Options
In recent years more and more programs have become available to make home buying attainable for more first time buyers. These programs will often allow new buyers to qualify for mortgages with down payments as low as 3% down. First time buyers should be aware that some mortgage brokers will only accept these types of loans when private mortgage insurance (PMI) is also acquired.
American Mortgage Resource is a home mortgage broker that specializes in home loans for first-time buyers, with very competitively low mortgage rates in Waltham, MA, the Boston area, and the entire state of Massachusetts. Despite your individual circumstances we will help you qualify, apply, and be approved for the right mortgage loan for you. Contact our team today for more information by visiting our website or calling us at (617) 972-8588.