What every First Time Home Buyer needs to know about a New Home Loan

I need help with my first mortgage!

Buying your first home is an exciting time. Complete this checklist to ensure it’s a great experience.

• Clean Up Your Credit

• Qualify

• Budget

• Research: Lenders

• Realtor / Agent

• Find Your New Home

• Accomplish Your Goals

Clean Up Your CreditPay your bills on time, pay off small debts. Avoid new credit or major changes during loan process.

See article for more credit advice.

PITI: Understanding the Cost of Home Ownership

The total of your housing payment, taxes and insurance should be under 28% of your income.

Your total debt level not to exceed 36% of income.

See article for more PITI advice.

Qualify: How Much CAN You Spend?

Prepare documents: assets, income, expenses

Apply: pre-approval letter

See article for more down payment advice.

Budget: How Much Do You WANT To Spend?

Have a spending plan.

Pay into your savings first, spend less.

See article for more budgeting advice.

The Right Lender is as Important as the Right House

Loan term and rates (fixed / adjusted)

Property appraisal

Origination charge (good faith estimate)

The Right Realtor can be Vital for First Time Mortgages

Match your dream to your budget: knowledge of the market

Make an offer: negotiate costs and contracts

Closing: final walk-through, insurance, documents, payment

Visualize It: Finding Your New Home

Prioritize: must haves, bonus, deal breakers size, bathrooms, backyard, kitchen, pool

Location: neighborhood, schools, highway,public transportation, parks, shopping

See article for more advice on living the dream.

Accomplish Your GoalsPrincipal (auto payments): just one extra payment per year makes a big difference

Emergency fund (insurance deductible): plan for maintenance

See article for more pay off advice.