Dos and Don'ts If You Are Availing First Time Home Buyer Loans

Buying your first property can be pretty exciting as it is one of the most memorable moments in one’s life. But it shows that first time home buyers are also the group that often errs in their judgment and take decisions that they regret for a lifetime. The lack of experience and enthusiasm often act as their nemesis. It is important that you measure your steps carefully while availing a loan. Lending consultants such as Clear Lending (www.clearlending.com) educate their clients on the dos and don’ts of home mortgage.

It doesn’t involve rocket science to take a decision that you would always count as your best in the twilight of your lives. Here are some of the dos and don’ts you should always keep in mind when you are availing first time home buyers loans.

The Dos:

• Check Credit Score – Your eligibility of home mortgage is directly linked to your credit history. In case you have missed payments in the past or already have a large debt, you should always check your credit score before applying for a loan. This will help you determine your eligibility for different loan programs.
• Consider All Loan Options –There are several first time home buyer loans available to you and you must carefully review all of them based on your eligibility. For instance, if you take a VA loan or a USDA loan, you are likely to pay lesser in terms of interests compared to a conventional loan. Hence, comparing different loan programs is always a good idea.
• Put Money In– While home mortgage programs offer as much as 100% financing, it is wise to put in some of your own money in the form of down payment. But by doing so, you would be able to save yourself from mortgage insurance and also lower the interest rates that will surely benefit you in the long run.

The Don’ts:

• Don’t Stretch Your Limits – Given a choice, every American would like to live in a luxurious property but not everyone can afford to do so. While mortgage programs often make you eligible for loan amounts way beyond your comfortable monthly payment capabilities, it can have disastrous effects on your future. So make sure to know what you can afford and borrow only that much and not the entire permissible amount.
• Don’t Hunt for Property First – You should never go hunting for a property without undertaking a pre-qualification assessment. Doing so, you may have to bear the mental agony of being denied a loan and not being able to buy the property you had set your eyes on. Instead, always know your eligibility and then hunt for a home within those limits.
• Don’t Increase Unnecessary Credits – It’s common for you to go hunting for a car or new furniture for your home once you have met the pre-qualification criteria. The problem is that every new credit that you add would reduce the chances of financing, especially when you have qualified for the loan program by a thin margin.

It is important that you work with experts such as Clear Lending (www.clearlending.com) while availing a home mortgage loan. Even though you may have the perfect Credit Score to be eligible for different loan programs, these agencies help you find loans at the best interest rates.

About Author: Joan Gallardo, with his 18+ years of experience as Senior Loan Officer, guides clients in choosing the best first time home buyer loans. He regularly writes blogs on first time home buyer programs in Houston and also on VA Jumbo loans in Texas.