Here are five ways you can make the process easier:
- Figure out how much you can afford to borrow. The monthly payment on your first mortgage will be only part of your monthly housing expense.
- Track mortgage rates.
- Choose a lender or mortgage broker.
- Save up a down payment.
- Gather your documents.
How do you get approved for your first mortgage?
What it takes to get approved for a mortgage
- Your monthly income.
- The sum of your total monthly debt payments (auto loans, student loans and credit card minimum payments)
- Your credit score and any credit issues in the past few years.
- How much cash you can put down.
- How much house you can afford.
Where can I get my first mortgage?
Summary of Best Mortgage Lenders for First-Time Home Buyers in 2020
|Lender||Best For||Minimum Down Payment|
|Quicken Loans NerdWallet rating Learn more at Quicken Loans||online experience||3%|
|New American Funding NerdWallet rating Read review||low credit score||3%|
|Chase NerdWallet rating Read review||face-to-face service||3%|
8 more rows
How long do you need to be in a job to get a mortgage?
Usually, it’s a good idea to have been in your existing job for at least three to six months before applying. The more you can save up to put down as a deposit, the bigger the choice of mortgages that will be available to you.
Is your first mortgage payment higher?
This means that your first payments are also likely to be higher than your last. You may have heard the phrase before but did not know what it actually meant. Unlike most things that you pay for, a mortgage is paid in arrears, which mean you pay for your mortgage after the fact.