When buying your first home, you want to make sure that you are getting the best loan terms possible. After all, the terms of your first-time home buyer mortgage loan can have a significant impact on how much you pay for your home in the long run. Thankfully, there are some things that you can do to help you secure the best loan terms possible. The three tips below can help you accomplish this goal.
Tip #1: Work With A Mortgage Broker To Find The Best Lender
Mortgage brokers have access to a much wider network of lenders than is available to individual applicants. This is because some lenders choose to only accept applications via a mortgage broker. This means that you have a much better chance of finding a mortgage loan that offers you the best possible terms when choosing to work with a mortgage broker to secure your loan. The best part is, many mortgage brokers make their services available at no cost to you. Instead of charging you a direct fee, these brokers are paid via commission when you finalize your loan. This means that you can take advantage of these services without spending any extra cash.
Tip #2: Boost Your Credit Score By Voluntarily Reporting Rent And Utility Accounts
In most cases, lenders offer lower interest rates to individuals with higher credit scores. Consequently, anything you can do to boost your credit score will always be a good thing. While there are many different ways to go about raising your credit score, many of these strategies will take weeks or even months to have the desired effect. However, there is a way that you can boost your credit score quickly. This is accomplished by voluntarily reporting your rent and utility accounts to the major credit bureaus. When you choose to do this, simply paying your bills on time each month will help you to either build credit or raise your credit score.
Tip #3: Lengthen Your Credit History By Asking To Be Added To A Family Member's Credit Account
Another important factor that lenders consider when reviewing your credit report is the length of your credit history. The reason this factor is so important when applying for a mortgage loan is that lenders want to make sure you can fulfill your financial obligations over a long period of time. If your credit history is still on the short side, you can help to lengthen your credit history and therefore secure better loan terms by asking a family member to add you as an authorized user on one of their credit accounts. Just be sure that the account you are being added to is in good standing and has been active for at least a few years.
To learn more about first-time home buyer loans, reach out to a mortgage lender or broker near you.
