Mortgage Advice for New Home Buyers

Applying for your first home mortgage can be a scary step to take. The housing slump does not make matters any easier, but there are several preemptive measures you can take care of to make your job a little less stressful. Although home values are falling, there are still plenty of good homes out there on the market and to find one, all it takes is a little preparation. Here are a few mortgage tips for first time buyers who aren't sure where to get started.

According to the federal reserve, last July more strict rules have been applied to lenders that "prohibits unfair, abusive or deceptive home mortgage lending practices and restricts certain other mortgage practices. The final rule also establishes advertising standards and requires certain mortgage disclosures to be given to consumers earlier in the transaction." What this means to the home buyer is you can expect brokers and lenders to work more with you than against you. Still, it's important to find a lender that you can trust and work with. To ensure that this happens, search online very thoroughly until you find one that you think would work for you. Beware of scams that ask for personal information with proper certification. See if the website you are on is verified or certified by online security companies. You can usually check this by scrolling to the bottom of the page.

Before you send in your application, make sure you have all the paperwork you might need ready. Prepare your tax information, insurance and any piece of important paper you can think of because chances are the lender is going to need it. Having everything ready to go will help speed things along. Maybe just throw everything that could possibly be relevant in a giant folder to keep it organized. Once everything is together you'll be able to answer your application questions faster and get the process moving along. When filling out your application, be sure to fill in all the information you can.

Discuss with your lender all the options being presented to you. Consult a few outside professionals if you know of any. Your decision on financing your home should be based on your income, personal assets and current circumstances. If you need help with the initial payments, there are local and federal bond programs that offer down payment assistance. Check out all of these options before committing to any particular mortgage or payment plan. Go with the mortgage that fits your situation now and you could always refinance later if it's necessary. Don't be afraid to ask questions.

Finally, before submitting that application, review it and see if there was anything left out. Any and all relevant information will help you in the long run. Lenders will take into account many different things when they consider your application and a good lender will use that information to help you out the best they can. Once everything is checked and double checked, send out your application and give it some time. If for any reason your application was rejected by a particular lender, just go down your list of prospects. It does happen. Also, it may be beneficial to consult a professional about your credit score to see if there is any way of improving it. Before long (if you've survived the journey thus far) you'll find yourself in a cozy new house. Just remember to take your time with the application and don't be afraid to ask some questions. You'll be glad you did later.