Very few people can afford to buy a home outright. Instead, most people take out a mortgage loan to cover the costs, then gradually pay that loan back over time. If you are applying for a mortgage for the first time, you can turn to our team at Harbor Mortgage Company for help. We have extensive experience in this field, and you can count on us to help you through every step of the process.
In this article, we’ll go over some key information you will need to provide when applying for your first mortgage:
- Proof of Income. One key piece of information you will need to provide when applying for your first mortgage is proof of income. Your mortgage lender needs to be able to see that you make enough money to cover your monthly loan payments. Be prepared to provide such forms as W-2s, paystubs, tax returns, or alimony/child support documents for this purpose.
- Debt-to-Income Ratio. When applying for your first mortgage (and all subsequent mortgages), your lenders will also want to look at what debts you have. Lenders will assess how much debt you have vs. how much income you are earning to determine whether you are a good candidate for a loan. To do this, they’ll want to see things like bank statements and retirement accounts.
- Credit History. Lastly, lenders will also want to look at your credit history to determine whether they want to give you your first mortgage. They’ll want to see how much of your available credit is being used and how quickly you are paying it off. Lenders will ask to see credit card statements and overall credit reports for this purpose.