Home buying can be a bit overwhelming for any of number of reasons. It’s especially difficult for millennials looking to secure their first mortgage. Balancing student loan debt, medical expenses, and hunting for a possible career that offers both job security and other benefits is a lot of work. Especially if you’re juggling kids and/or a new marriage along with it all. With all these factors to worry about, is it any wonder that young people are opting for other housing besides home ownership? Renting or living with their parents being the most ideal situation.
Coupled with the unearned stigma that they have simply “failed to launch,” most Millennial first time home buyers struggle with simply understanding how to secure a home mortgage. Student debt, interest rates, mortgage rates and anxiety over bad credit loans are just some of the factors that hold young people back from investing in their first homes. Fortunately, financing your first home mortgage doesn’t have to be a stressful nightmare.
Here are three tips about how to secure a mortgage loan for Millennial first time home buyers:
1. Safeguard your Credit Score
Mortgage brokers and creditors always examine a prospective homeowner’s credit history before offering a residential loan. They want clients to have a solid and trustworthy record of consistently paying off debts on time.
When buying a home, always consider that different companies have varying criteria for a passable credit score. This is the biggest barrier to getting approved for a mortgage program. Make sure that you have a pristine credit score by paying off outstanding debt and stop applying for new credit. Read more about how you can prepare financially before buying a new home.
2. Creditors will consider your work history – so keep it consistent
Two to three years of work history influences the decision of mortgage services to provide home loans. Lenders want to see a consistent record of working for the same company or industry with a regular schedule that remains stable.
opens in a new windowAside from this, earning a larger income and receiving greater benefits will also raise your eligibility for a mortgage. The key here is consistency, so staying in an occupation that seems tiresome at present can reap huge rewards in the future.
3. Mortgage Pre-Approval will boost your chances of receiving a mortgage
Gaining a mortgage pre-approvals means that the bank, mortgage broker, or another types of lender has reviewed your financial status and understands the kind of residence you can afford. The mortgage pre-approval process usually starts by meeting with a lender and providing various documents such as your full tax returns, your W-2 statements, and pay-stubs.
During this stage, keep in mind that the creditor may ask for more documents to review depending on the loan type and your personal circumstances. Things like bank statements or other financial records may come into play. Click here if you’re looking to speak with someone about your mortgage pre-approval.
Not sure where to begin?
At Preferred Mortgage Corp. of NY, we’re eager and able to support our clients with advice and insights that will help secure a new home. Contact us today for any mortgage questions or just click the chat icon!
Preferred Mortgage Corp. of NY is a mortgage broker located in Rochester, NY.
We provided mortgage services throughout New York State including Rochester, Buffalo, Syracuse, Albany, and New York City. We’re also licensed to do business in Florida. Click here to contact us about our mortgage services.
Preferred Mortgage Corporation of New York – NMLS # 44812 Registered Mortgage Broker – NYS Department of Financial Services & Licensed Mortgage Broker Florida Office of Financial Regulation Loans Arranged Through Third Party Providers