How to qualify for your first mortgage

BUYING your first home can be a very rewarding experience.

Everyone looks forward to owning their own home at some point in their lives, and doing so requires that you are prepared and qualified.

If owning a home is a dream of yours then you’ll have to get ready and that means knowing what it takes to qualify for your first mortgage, says Choice Home Loans.

This checklist can help you plan ahead and guide you on your way to home ownership.

Establish a budget

Purchasing a home can be a very emotional experience, one that can sometimes cloud even the most responsible person’s judgement regarding what they can and can not afford.

Creating a budget at least a year in advance of purchasing a home that is reflective of what you anticipate your mortgage to be along with your other monthly bills, will allow you to see first hand what you really can afford and allow you to make changes as you go along.

Review and clean up your credit

Take a look at your credit.

Don’t assume that just because you’ve always managed to pay your bills on time that your credit reflects this.

Mistakes are made all the time on credit reports and waiting until you’re ready to purchase a home to look for them can place you in a precarious position.

If you know your credit needs work then contact the creditors and make arrangements with them to get those blemishes cleared.

Save, save, and then save some more

The more money you can save, the less money you’ll have to borrow for your first mortgage and that makes you a more attractive borrower to mortgage lenders.

You should also save money so that you are able to address any emergencies that may arise during the home buying process that may require additional money.