Buying your first home is probably one of the most important things that you’ll do in life.  Even though it’s a time for celebration and anticipation for the future, it can also be a hugely stressful period in ones life.  For most people, it requires the need to make careful, well-informed decisions about getting a mortgage and the process that’s involved.

The truth is that getting a mortgage doesn’t have to be a difficult and stressful process.  The problems with securing a mortgage for a new home arise when individuals don’t know anything about the process that’s involved and the steps that need to be taken.

Are you finding the process of getting a mortgage difficult?  If so, the following are a few tips that, when paid attention to, will be your first mortgage survival guide.

Find the Right Broker

Finding the right mortgage broker can be essential to the process.  Make sure you research carefully and check out their history and credentials.

First Mortgage Survival Guide by 201(K) 2012, on Flickr.  This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 2.0 Generic License.

Know Your Credit Situation

If you’ve no idea what your credit history situation is, you could be in for a rude awakening when you sit down with the bank manager looking for a loan.  Before you visit your chosen bank or financial institution, you should get yourself a copy of your credit report so that you’re properly informed about your financial past.  If there are discrepancies that need to be addressed, attend to them before you apply for the mortgage.  

Have All Documents On-hand

When applying for the mortgage amount that you’re looking for, you’ll need a number of specific documents on-hand to present to the lender.  These include bank statements, tax records and any details regarding assets and liabilities that you may have.  To maximise your own time and that of the financial institution, make sure you’ve all the necessary documents organised prior to the meeting.

Have as Much of the Deposit as Possible

Nowadays, some banks require applicants to have up to 20% of the value of the loan ready as a down payment before they’ll grant a mortgage.  Although it’s not a requirement from all banks, it’s a good idea to save up as much money as possible in the months, or even years, leading up to the application process.  This prevents undue stress and leaves you in a better position financially.

Pay Off as Much Debt as Possible

This is an obvious tip, but it’s one that not too many people pay attention to.  It makes little sense to rush into a big mortgage repayment plan if you’re already in a lot of debt.  Pay off as much of your pre-existing debt prior to looking for a loan, as this will most certainly give you a better interest rate from the bank.

Keep Things Stable

After you apply for a mortgage, you should not make any major life changes in terms of relocating or job changes.  Why?  Doing so could have a negative effect on the current interest rate that you’re getting from your bank as it may result in a substantial increase.  

When all is said and done, first time buyers really need to think about the big picture when applying for any loan, especially a mortgage loan.  Following the above tips will help you to stay organised and focused on the process that’s involved giving you the best chance at securing the correct amount that will enable you to buy your very first home.