For many young couples purchasing their first home is a dream come true. As they tour the house they envision how their furniture will look, what colors to paint the walls and which bedroom will be perfect for their future children. One thing that they should have on their minds is their mortgage. First time loans for home buyers can be costly if you are not aware of what you are looking for. Many financial institutions offer first time loans to those looking to purchase a home. First time loans for mortgages are a bit different than traditional mortgages in that those applying don’t have the luxury of a history of well paid mortgage payments.
Many people deal with only one financial institution including having a checking or savings account with them. You’ll want to consider them first when you are in the market for first time loans for a new mortgage. They will already have an understanding of your financial history. Many people apply for a credit card from their primary bank and this can help when it comes time to fill out the documentation needed for a mortgage. The financial institution will want to know how stable your employment is. To this end they may request a letter confirming your employment history and salary from your employer. You simply need to explain to your place of employment that you are applying for a mortgage and they’ll recognize the importance of the letter.
Another document that many financial institutions request when you are applying for first time loans is a copy of your income tax return. They want to see this because it will give them a better idea of your gross income.
Be prepared to supply income tax returns for several previous years. When you are applying for first time loans for a mortgage you know that your home will be the biggest piece of collateral. The bank will have the authority to repossess the property should you fail to meet the terms as outlined in the mortgage documents. In some cases when a young couple is in the market for first time loans for a new mortgage the lender will request someone cosign the loan. This means that if the couple fails to meet the payments that the cosigner will.
Quite often a parent will take on this role. Although the prospect of getting into so much debt can make you wary about applying for first time loans for mortgages, the investment is well worth it.
Owning your own property is the first step to a secure financial future.