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One of the biggest milestones many of us reach is buying our first home. It can be an exciting time in one’s life, but it can also be a stressful one. Being able to navigate through the home buying process can sometimes be cumbersome, especially if you have never done it before. Here are 4 quick tips to get you started on the right foot.

1. What Can You Afford?

Before you start looking for that dream home, you should be realistic as to what you can and can’t afford. Using an online calculator, you can take your annual income and estimate how much you can afford. Or, if you do have a house picked out, you can use a calculator to see if your income is enough to cover the estimated monthly payments. You can check out both of these calculators at our Online Mortgage Center.

2. Check Your Credit

Your credit will play a key role in deciding if you will be approved for a mortgage and which rate you will receive. The higher your score, the lower your rate will be. Check your credit report for free to find any errors that may hold up your mortgage and to discover ways to increase your score. 

3. Research Your Mortgage Options

There are many different mortgage loans available, but you may not qualify for all of them. Here are just a few types of mortgages for you to consider:

• Fixed-rate Mortgage. This may be the simplest of all mortgage types. Your payment will not change over the course of the loan because your interest will not change.
• Adjustable-rate Mortgage. With this type of mortgage, you will start with a lower interest rate and a lower monthly payment. However, the rate and payment will change as time goes on.
• Federal Housing Administration (FHA) Loan. These federally-backed mortgages are designed for low to moderate income borrowers and offer a down payment as low as 3.5 percent.
• VA Loan. This mortgage is guaranteed by the United States Department of Veterans Affairs and is available to American veterans, those who are currently serving in the U.S. military, reservists and some surviving spouses. These mortgages sometimes require no down payment.
  

4. Get a Pre-approval letter.

When you feel you’re ready to start looking for a home, speak with a lender about getting pre-qualified. The lender will give you an estimate of how much you might be able to borrow based on your current income and debts. As you get closer to buying a home, you should reach out to your lender and ask for a pre-approval letter. The lender will then thoroughly examine your finances and confirm how much they are willing to lend to you. Having this letter will make you appear more serious to the seller.

By doing these 4 things, you will be well-prepared to find your first home. Want more information on your mortgage options? Visit our Online Mortgage Center to contact an expert today.