How First-Time Home-Buyership Programs Help You Qualify For A Mortgage

The real estate lending market has been challenging over the past few years, but that doesn't mean first- time home-buyers can't qualify for a mortgage on a new home. The major hurdle first-time home-buyers have is getting approved by the lending officer. Here is how participating in a home-buyership program can help you get approved by a lending officer for a commercial bank.

Maintaining the Property

First-time homeowner programs are aimed at people who rent who may, or may not, have a background in living in a home that was owned by an immediate family member like your mom, dad, or both. The assumption is that renters haven't really been exposed to all of the responsibilities that suddenly appear once you purchase a home.

All of a sudden you are responsible for fixing the leak in the roof or foundation and cutting the lawn. A home ownership program will teach you what to expect once you gain control of a brand new home.

If the lending officer has confidence that you really understand the responsibilities you are about to take over, the more at ease they will feel to approve your mortgage application.

Creating a Budget

The home-buyership programs focus a lot on teaching you how to create and follow a budget. They teach you how to manage your monthly cash flow so you can cover your monthly expenses while setting aside funds for unexpected expenses.

If you've participated in one of these programs, the lending officer will know you've given serious thought to how you're going to manage your money and pay your mortgage consistently on time.

Get Finances in Order

Home-buyership programs have relationships with local banks who supply money to them to help the home-buyership programs exist, and to make sure they have applicants who can qualify for one of the first-time homeowner mortgage lending programs offered by federal and state governments (these programs protect the bank against financial loss in case you default on the mortgage).

A big part of getting qualified is making sure all your past outstanding debts are either paid off, or you are current in your payment arrangements.

First-time home-buyership programs assist in helping you make arrangements with your creditors so you can clear up your past debts. They will often negotiate with creditors on your behalf so you can make structured payments that you can afford to make and that will look good on the credit report.

Home-buyership programs teach you what the process will be like as a first-time home-buyer, and what will be expected of you as a homeowner. These lessons put the lending officer at ease and help you qualify for a mortgage. Remember this advice when looking for new homes for sale.