Ultimate Guide to Getting Your First Home Loan Approval

If you’re looking to buy a house, you might be worried about getting your first home loan approval. That’s understandable.

Getting your first mortgage can be a stressful and daunting process. But it doesn’t have to be. If you know what to expect and come prepared, you can make the process much easier.

6 Tips To Get Your First Home Loan Approval

Check Your Credit Score

Your credit score will determine whether or not you can even get a loan. A low score could exclude you from getting a mortgage. It could also increase costs if you do get approved.

Check with one of the three major credit bureaus—Equifax, Experian, and TransUnion. If the score is low, you should take measures to improve it.

It’s also important to check your credit report to catch any errors or discrepancies. Correcting errors could be a way to boost your credit score.

Set Your Budget

Before you even consider applying for a loan, you need to figure out how much house you can afford. When setting your budget, you need to account for additional costs along with the purchase. You’ll need to cover closing costs, taxes, home inspection fees, and other expenses associated with buying a home.

Consider Mortgage Options

There are several types of mortgages available for first-time homebuyers. These include government-backed loans, conventional mortgages, and more. Each type has its pros and cons. You’ll need to research before deciding which is right for your situation.

Get Your Paperwork in Order

You should have copies of your documents handy when applying for a mortgage. Coming prepared with the necessary documents will make the process smoother and faster.

Make sure to gather all the documents lenders require. Prepare income verification, proof of assets, and a list of liabilities. You should also check everything to make sure it is up-to-date and accurate.

Compare Lenders

You don’t have to settle for the first mortgage or work with the bank that holds your accounts. Borrowers should compare several lenders. You can find the best lending option for your budget and needs with a comparison.

Get Pre-approved

It’s a good idea to get pre-approved for a mortgage once you’ve found a suitable lender. Pre-approval is when a lender reviews your finances and determines how much they are willing to lend you. Some sellers will only entertain offers from someone who has already secured pre-approval.

Let Us Help You Buy a Home!

When it comes time to apply for your first home loan, hire a qualified realtor who understands how mortgages work. They can use their experience to guide you through the process.

If you’re looking for a home in Santa Clara County or Alameda County, we are here to help. Call us at +1 855-644-5626 or send us a message through our contact page. We’re happy to chat, whether over the phone or in person!

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