Buying your first home is a thrilling adventure, but applying for a mortgage loan for the first time is often daunting. You’ll have to fill out a stack of paperwork and provide reams of financial information. Still, there are ways you can prepare to help streamline the process. Below are a few steps to getting the funding you need to buy your first dream home.

5 Steps to Securing a Mortgage

1. Check Your Credit Report

Lenders check many criteria to see if you qualify for a loan, the most important of which is your credit score. Before you start, get a copy of your credit report and check it carefully for errors. Consider taking action to bring your score up before applying for a mortgage loan, and keep in mind that different types of mortgages have different minimum scores. 

2. Pay Down Debts

Your debt-to-income ratio is also a key factor lenders use to determine whether you get approved and what your interest rates will be. Paying down debt is a fast way to bump your credit score, as long as you keep the accounts open.

3. Get Your Documents Together

To process your mortgage loan application, the lender will want to see your last two tax returns, three months’ worth of bank statements, and recent pay stubs. You should also bring an account statement showing that you have the down payment ready.

4. Get Preapproved Before Looking at Houses

Getting preapproved for a mortgage loan allows you to get the most difficult, stressful part of the process out of the way first, so you can make an offer with confidence. As an added benefit, sellers typically take offers from preapproved buyers more seriously.

5. Check First-Time Buyer Programs

The Federal Housing Administration offers financing programs designed specifically for first-time homeowners. Even buyers with less-than-perfect credit can be approved with as little as 3.5% down, so ask your loan officer whether these or other programs might be right for you.

Buying a home? For more than 90 years, Armstrong County Building & Loan Association has been Ford City, PA’s premier mortgage loan provider. They pride themselves on making the process as easy as possible, with friendly, knowledgeable officers who know how to get you the most affordable loan available. Visit their website for more on their lending services, get more financial tips on Facebook, or call (724) 763-7137 to apply for a mortgage loan today.