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First Time Home Buyer Tips

by: Max Pain
Preparing to buy your first home can be stressful, especially when dealing with lenders. Lenders will look closely at your application before approving you for your mortgage loan. Your credit score and the amount of your down payment are important parts of the approval process. However, there are other things you can do to better the likelihood of your mortgage loan being approved by the lender.Show Your Income

Your lender will most likely need your tax returns and W-2 statements for at least two years, as well as your recent paycheck stubs. If your main source of income consists of commissions, be prepared to detail how those commissions make up your yearly income. Commissions are not considered as reliable as a salary based income. Write a letter detailing how your commissions are earned over the year and attach it to your loan application for your lender to see. Do the same if you receive a yearly bonus. If you have received a bonus steadily over the last few years, it can be considered part of your yearly income. Write a letter showing the amount of your bonuses and also get a letter from your employer stating the same. If you are self-employed, it might be better to show yourself as an employee rather than as the owner. Lenders see additional risks involved with business ownership so be prepared to provide extra documentation.

List Your Assets

Next you will need to list all your assets. Assets include cash, but can also be CDs, stocks, or anything you have of value. A good list of assets could help set the ground-work towards the approval of your mortgage loan.

Examine Your Spending

Examining your spending habits will help you decide how much money you can raise for a down payment. Take a close look at daily spending habits. Do you make a lot of impulse buys or spend an unnecessary amount of money on fast food or morning coffees? Cutting back on these extra expenses could help you save more towards your down payment. Creating a budget could also help you keep a close eye on how your money is being spent and help you decide how much of a mortgage loan you can afford.

About the Author
Lauren Armstrong is an industry professional & expert author at Smartloanstart.com. Other articles Student Loans & Mortgages

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