Your First Mortgage: Everything You Need To Know

Published on September 12th, 2016

So you think you’re ready to start the search for your first home?  Congrats! This is a big step, so it’s time to get prepared. As you’re house hunting and envisioning the new color scheme for your future living room, don’t forget you will likely need a mortgage.  Just as you’d shop for houses, you should also be shopping for your mortgage. Luckily, the era of the digital mortgage is finally here.  You can get your mortgage right from your phone, computer or tablet! Start the process in less than two minutes with a  free online rate quote. Here is a guide of everything you need to know for getting your first mortgage.

How much do you know about mortgages?

If you’re product searching, look no further! vLoan has compiled info about all of our products for you.  Getting a free rate quote can help you understand how much you can afford and aid you in the search for your new house.  A mortgage advisor will let you know if there are any problems you need to pay attention to.

How much debt is in your name?

Put some effort into paying off your other debts before you move into your home.  Your debt-to-income ratio comes into account when you apply for your mortgage.  Before moving, if you pay a little extra each month on your student loans or car payments, you can lower your overall debt.

Developing good credit habits are important

Missing payments can really hurt your credit score, plus your mortgage advisor will see you have a habit of paying bills late.  Your mortgage advisor wants to see that you always pay on time.  This will increase your chances of qualifying for your loan and getting a better interest rate (APR).  If you have a tendency to forget to pay, consider setting up automatic payments through your checking account once you start making mortgage payments.  That way you will never miss a payment and you will always pay on time.

Lenders like to see a solid work history

How long have you been at your job?  If you haven’t been there for two years, you might have a harder time getting a mortgage because lenders like to ensure you have a steady and reliable income.  Lenders might be lenient if you just graduated from college and have gotten a job in your field. Do you have a side hustle or work freelance? You definitely need to make sure you’re documenting all of your income so you can easily provide this information to your mortgage advisor.

Keep your financial documents in a safe place

It’s time to gather all of your documents: verification of your income, bank statements, tax returns, etc. This might seem like a lot, but vLoan makes it easy.  If you use our app, you can snap a quick photo of your document and send it right to the loan officer.

Save, save, save 

It’s important to save as much cash as you can.  You will want to be able to afford your down payment and also have money left over for any other expenses.  A good rule of thumb is to set aside at least 6 months’ worth of your bills. In the case of an emergency, unforeseen event or home repair, you will be set to cover the expenses.

Explore your options

It’s good to shop around.  Not all lenders will offer you the same products or the same interest rates (APR).  If you’ve already talked to a lender, that’s okay.  We’re the leaders of giving you a second opinion! We’d be happy to compare you current offer with what we can provide to see if we can offer you a better interest rate (APR).

If you believe you are ready for homeownership, call us today at 1-844-778-5626. Get a free online rate quote to get the process started!

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