Your first home is a big step. There are plenty of approaches to preparing for buying your first home, but there are some fundamentals you should consider that will help during the mortgage process. These fundamentals break down into three categories; how much can you afford, knowing your finances and credit, and shopping for mortgage lender.
WHAT IS YOUR BUDGET FOR A NEW HOME
There are different rules of thumb regarding how much of your income should go towards your housing payment. 30% is a conservative number that should allow you to still save and cover other monthly expenses.
CHECK YOUR FINANCES
You can expect certain questions from your mortgage lender. They are going to want to know about employment, your income, your current debt, and your assets. You also will want to have a good idea of what your credit score is before you see a mortgage lender.
SHOPPING FOR A MORTGAGE
Know your mortgage lingo. If fixed-rates and adjustable rates are already confusing, you need to brush up on your mortgage terminology.
Don’t feel like reading? Here is a great 3-minute video that walks you through a mortgage for first time buyers.
Stonebridge Mortgage Group can help you with your first home mortgage. We serve the greater Portland area and are in Gresham, Oregon.