Blogs

Mortgage Tips For First-Time Home Buyers

Buying your first home is an exciting time in your life, but it can also be pretty stressful! If you have never had to apply for a mortgage in Nashville before, you may not really know where to start. With that in mind, we've put together a few tips to help first-timers secure a mortgage in Nashville.

1 - Understand Your Credit Report

When you apply for a mortgage in Nashville, potential lenders will want to look at your credit report. This allows them to study your payment habits and outstanding balances and get an overall feel for your current financial situation. Your credit report, coupled with your credit score, will help the lender determine how much of a risk lending to you is, and it can also help determine what sort of interest rate you will qualify for. In general terms, the better your credit history, the more favorable your interest rate is likely to be. In preparation for applying for your first mortgage in Nashville, you should review your own credit rate every month and adjust your financial habits accordingly. In addition, if you see any errors on your credit report, you can immediately alert the credit bureau and rectify them, so it does not negatively impact your credit score or credit report.

Pro Tip! Once you have applied for your mortgage in Nashville, it is best to keep your credit stable. Don't rush out and get some new credit cards! Lenders often pull your credit report more than once; any drastic changes to your credit report could jeopardize your mortgage.

2 - Get Pre-Approved Before You Make an Offer

The housing market is highly competitive, and you are likely going to have to go up against other potential buyers when making an offer on a house. That's why we will always advise getting pre-approved for a mortgage in Nashville before making an offer on a property. There are several reasons for this, the first one being that it will approve you for a loan up to a certain amount. This gives you a solid budget that you have to work with and will help you avoid getting drawn into a bidding war that pushes up the price! However, the main benefit associated with getting pre-approved for a mortgage in Nashville is that it shows sellers that you are a serious buyer with a mortgage in place, which may help make your offer a little more attractive to them.

3 - Save For a Downpayment

As a first-time buyer, you may not be fully aware of the various expenses associated with buying a home. One of the most important ones if you are going to be applying for a mortgage in Nashville is saving up for a down payment. Studies indicate that first-time buyers usually take about 6.5 years to save the expected 20% for a down payment, so if you have not already started putting money aside, now is the time to start saving! It is worth noting that although the average downpayment is around 20% of the property's value, some lenders may accept a lower downpayment. It is also important to consider all of the other expenses that go hand in hand with buying a house. Make sure you are aware of additional costs that will be required and consider putting extra money aside to cover those too.

4 - Check Programs Like FHA, USDA & VA Loans

If you are only able to save a small downpayment, that does not necessarily mean that you cannot apply for a mortgage in Nashville. It is worth checking out some of the programs designed to offer mortgage assistance, such as FHA Loans, USDA Loans, and VA Loans. Most of these programs have a minimal downpayment; some don't require anything at all. It is worth investigating whether you will be eligible for these programs.

5 - Ask About First-Time Buyer Programs

As a first-time buyer, you may also qualify for first-time buyers programs to help you get a mortgage in Nashville. These programs vary from one area to the next, with some offering lower down payments and others covering the closing costs and other expenses.

6 - Keep Physical Copies of Your Paperwork

We live in an increasingly digital age, and most of us do almost everything online. However, when it comes to purchasing a home, it is always a good idea to save some physical copies of all the paperwork. You will want to have your mortgage statements, closing disclosure, title deeds, and other essential documents in a fireproof box or cabinet. Make sure you and your immediate family know where to access them in case of an emergency.

These are a few things that might help you when applying for a mortgage in Nashville. If you need guidance in finding the right home loan to fit your needs, get in touch with Flat Branch Home Loans, The Erica Kelley Group, and we will be happy to help.

--

Human-Centred Mortgage Loans

Whether you are a Veteran, a first-time home buyer, looking to refinance, or everything in between, Flat Branch Home Loans, The Erica Kelley Group specializes in finding the right home mortgage for you. It is our honor to help you acquire something that is "yours."

Call 615-423-3095 or email ekelley@fbhl.com