How To Get Your Loan Approved By The First Home Loan Lender

Now, even more than ever, your credit score counts. The average good score has been raised to 720 to 750 for most lenders, including first home loan lenders. A first home loan company will scrutinize your credit report heavily. Make sure it's in pristine order. Be ready to explain any questionable entries.

There are new rules coming about that may help those whose credit only suffered a minor ding here and there, but if you have multiple late payments and defaulted loans, your chances of getting approval from a first home loan company drop substantially.

Since most first home loan lenders are not doing subprime loans anymore, if your credit is not good, you will find the battle to be uphill. Check with your local city and state agencies, they have programs that will help first time home buyers.

A first home loan company may ask for additional proof of your income and assets besides just your tax returns. They may also ask for several month's worth of bank statements and copies of your W-2s, electric bills, credit card statements, phone bills or anything else that's been mailed to your resident. This is to assure them that you're not a fly by night con man.

You can expect to have to substantiate any level of income you state on a loan. Unlike the past liar's loans, which allowed self-employed people to estimate their income with little documentation, newer guidelines are keeping this from happening.

You will be asked to put down from 10 to 20% of the home's value as a down payment. If your credit is less than stellar and/or your income fluctuates, then you may be asked to put the full 20% down in order to qualify for the interest rate that you want on the loan that you want. Sometimes it's better to take the higher interest rate to get your dream house. This way your down payment will be less but you'll pay on it longer.

You can negotiate with the first home loan company to put down less than the full 20% but it usually comes a higher cost of a higher interest rate, which will add up to thousands on top of the cost of the loans.

In addition, if the home's value depreciates, as some have done in California and Florida, the additional equity you've placed in your home can keep you from being upside-down later when you want to sell or refinance.

If this is your first time buying a house, you probably are trying to figure out where to get a first home loan lender.

Often, people don't go looking for a first home loan lender until they've looked at some houses for sale.

Find out where to get your first home loan lender