First – Time Home Buyers Programs
Whether you’re a first-time homebuyer or a previous buyer looking to buy a new home or condominium, it’s important to become comfortable with the homebuying process, prepare documentation for the mortgage application, and familiarize yourself with the different home loan options available to you.
What is a Mortgage?
As you begin the homebuying process, you may become overwhelmed by all the real estate terms thrown at your direction.
As first-time homebuyers, people often give up on their decision of buying a home before you even begin the process because they seem to have more questions than answers. We are here to advise you that it’s okay to feel unsure and overwhelmed. That is why we are going to bring you some of the answers you have been searching for.
To commence the discussion, you may be wondering what exactly is a home loan or mortgage. A mortgage is simply a loan borrowed by an individual to assist them in buying a home, condominium, townhouse, or apartment. The loan is given on agreement that monthly payments will be made and upon the last payment, the end of the mortgage process is complete transferring the property to the homebuyer. Each loan has different agreements and terms to qualify for.
We will discuss the different home loan options further in the discussion.
How do I obtain a Mortgage?
Now that you understand what a loan agreement is, you may be wondering how to go about in obtaining such a loan or even how to increase your chances of getting approved for a loan. Homebuyers are often discouraged because they believe they need a high credit score or a substantial down payment. When in reality, there are different options that exist to help everyone no matter their financial situation.
To start off, we will discuss the proper documentation that you need to fulfill the process.
Everyone who is listed on the loan will be prompted to bring in their individual financial information to serve as proof of income. These documents are typically
- Copies of Recent Pay Stubs,
- Tax Returns and Forms ( From 1 or 2 years Ago )
- Bank Statements
The reason lenders request so much information that may seem redundant at one point is because they need concrete proof that you will be able to make monthly payments as the agreement of the loan states. They want to be positive that you will be able to comply with the loan agreement. This is often why homebuyers are advised to begin the home buying process early in order to adjust any issues they may have with documentation because these protocols need to be followed in order to approve a home buyer for a loan. Depending on the type of loan, you may be asked to bring in more paperwork while in others you are asked for minimum information. Let’s discuss some of the loans you may encounter.