First Time Home Buyers

First Time Home Buyers

Who do you know who may be looking for a home or shopping for a mortgage for the first time? Perhaps you have friends or relatives who are less experienced than you, and who might find the following tips helpful.

· Jobs: Lenders want borrowers to have two years on one job. They will accept job hopping if the person has been moving up. If the person was terminated with cause, has long gaps in their employment record, or has dips in their income level that are difficult to explain, they would be better off delaying the purchase of a home until they are able to demonstrate a more stable work history.
 
· Bills: A two-year history of making payments on time is a necessity. Even if the person's debts are current, they may not be considered a good loan risk if their monthly payments are made after the due date.
 
· Credit history: People who have never taken out a loan or had a credit card may not have established any credit history. Encourage future borrowers to apply for credit cards and use them responsibly.
 
· Cash: Prospective homebuyers should have enough money to make at least a 5% down payment on a house and money for closing costs which may amount to several thousand dollars.