So you've committed to buying a home, congratulations! Deciding to own a home is a big step, but there's still a lot more to work through before you move into your new digs. How you pay for that home is what we're talking about, and getting a mortgage is how to get there. As a first-time homebuyer, you likely have a lot of questions about getting a mortgage, so our real estate agents put together this list of tips for applying for a one.

First-Time Buyer Mortgage Tips

• What Can You Afford?
  This is a great place to start your mortgage journey, and it begins with affordability. Generally speaking, lenders will look at your finances and use approximately 25% of your gross income to project what you can or should afford in a mortgage. Using that formula, you can play around with the numbers. In other words, if you make $100,000 per year, then you should be able to spend around $25,000 on housing annually or about $2,000 per month.
  
  
• Know What You Need
  Once you've determined what you can spend on your mortgage payment, it's time to project some additional costs and get prepared for what you need to purchase. Take into consideration some of the extra things you'll likely be responsible for when it comes to closing on your home.
  
  Closing costs alone can run anywhere from 2% to 5% of your home's purchase price, which can catch first-time buyers off guard. On your closing day, you'll likely be required to pay all of those closing costs in addition to your down payment, which can set you back thousands of dollars.  With that said, make sure you've either got savings or are working toward saving for that big day.
  
  
• Gather Your Loan Documents
  Mortgages are big business, and lenders put themselves in substantial risk lending large amounts of money to first-time buyers. With that said, start gathering as much of your loan documentation as you can before the process begins in earnest.
  
  Your lender will need basic personal information, which you'll likely provide on your mortgage application, but be prepared to provide plenty of financial documents to prove your financial stability. Be ready to give your lender two years worth of tax returns, at least two months of pay stubs, two months of bank statements, and any relevant information about your current assets.
  
  
• Hammer Out Your Finances
  While this very well could be tip #1 of applying for a mortgage, it goes without saying that before you get too involved in the mortgage process, hammer out your finances. Lenders will look at your credit score as well as your debt-to-income ratios, and the documentation you provide to make a well-rounded decision about your risk to them as a borrower.
  
  Straighten up your finances by getting rid of any petty debts that will in turn raise your credit score. Additionally, make efforts to pay down or pay off any loans you may have outstanding, such as student loans, car notes, and credit cards. Anyway, you can boost your finances to lessen your lender's liability on you as a borrower will be a major boon to your mortgage cause.

Buy in Brighton

If now is the time for you and your family to buy and you're looking for Brighton homes for sale, then get in touch with one of our realtors. Contact us today and get started with your home buying journey and get into the house of your dreams!