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Having thorough information about mortgages is essential for first-time homebuyers. With several mortgage tips out there, it may be difficult to know how to proceed. If you're new to the market, there are a few surefire things you can do to get a mortgage rate you'll feel good about. For some of the best tips on getting a great loan, look no further than the following. 

First-time Homebuyers must Know their Credit History

It's a simple fact that one of the most important factors in your mortgage application is your credit history. Whether it is good or fair, it's important to be aware of where you stand. The acceptable credit score for mortgage approval can often fluctuate. However, the best rates are often available to those with a score that is higher than 760. To improve first-time homebuyer's mortgage rates, it is advisable to get a copy of your credit report. Make sure to pay attention to any discrepancies that might be in it. These may impact your score and application negatively so you'll want to have them revised if they're incorrect.

Save your Down Payment

It's not a requirement of mortgage approval to put 20% down. A down payment of this size will lower your debt-to-income ratio and will make you a more solid bet for the lender. By having 20% in the bank to go towards your home investment, you will also be able to qualify for a lower rate. Moreover, you will not be required to pay mortgage insurance. This results in a lowered monthly payment for you. Another positive effect of this is a higher disposable income in the event of market fluctuations.

In addition, take note of the new president's recommendation during his campaign about having up to $15,000 tax credit to first-time homebuyers. The intended effect is to help first-time homebuyers purchase their new home. Further details about this proposal are yet to be disclosed.

Consult With A Mortgage Professional

Having a professional to help first-time homebuyers with their mortgage can be beneficial for a number of reasons. A mortgage expert will not only be aware of market conditions, but they will also have a relationship with the lenders. What it means is, they may be able to get you a rate you wouldn't be offered on your own. While you may want to go it alone, there are benefits to consulting a professional.

There's a lot involved in the mortgage process, but by putting 20 percent down and having a good credit history, you'll be well on your way to a great rate. If you're currently on the market for a home, you may want to contact one of our mortgage professionals for more information.