Homebuyer Mortgage

Can You Get a Mortgage Without a Job?

Here is the situation: You want to buy a home – but need a job. Is it possible? Can you find a lender willing to give you a home loan without supplying proof of steady income? Maybe you would like to refinance your current home but aren’t working – will you qualify? 


It is not at all uncommon for lenders to require a job to get a mortgage, asking potential buyers to submit pay stubs and tax information to reflect employment. But what happens if you try to get a mortgage without a job? 


You can exhale right about now. The answer is yes. You can still get a mortgage or move forward with a refi even if you aren’t employed. However, be prepared to meet a few lender requirements along the way. 


Buying a Home Without a Job

Confirming that a borrower has steady employment is always one of the boxes lenders check off when deciding whether to give you a mortgage. They want to ensure that when they agree to invest hundreds of thousands of dollars into your purchase, you can repay it over time. 


Without a job, how would you do that? 


Believe it or not, people always buy property without a job. Think about it – individuals who are retired, recently divorced, or even those sitting on investment accounts can buy a home with a new mortgage. 


The lender needs reassurance that you can meet monthly payments and will be able to repay the mortgage when it is due. This doesn’t have to come from a job. And, it doesn’t mean you have to be sitting on investments, either. 


Let’s look at a few ways to buy a home without a job. 


Have a Source of Income 

Just because you don’t have a job does not mean you don’t have a reliable source of income. Again, the lender wants to confirm you have a way to repay your mortgage. Whether that comes from waiting tables at a local restaurant or alimony payments does not matter. 


A few alternate sources of income that many lenders will consider instead of employment include investment income, retirement income (social security and/or pension payments), alimony payments, child support payments, rental property income, and so forth. 


Find a Cosigner

If you have someone with a steady income and good credit who would be willing to step up and co-sign your mortgage with you, you may qualify without a job. Co-signers are often parents, relatives, or loved ones who want to help.


It is important to note that this person will be financially responsible for your mortgage, ensuring it is repaid. Otherwise, if you cannot make your payments, they, too, will be held liable for the outstanding balance.


Housing Counselors May Help

As their name suggests, housing counselors are those who can help you uncover how you can get a mortgage – and be able to prove you can pay it back. They are trained and certified in helping individuals plan to make this investment. 


You can find housing counselors through the Department of Housing and Urban Development (HUD). 


Using Investments and Cash-on-Hand

If you have cash reserves that you are sitting on, you may not need to work to get a mortgage or refinance your property. This money may have come from some wise investments you have made over the years, or it could be due to an inheritance you received. 


Depending on the amount of the mortgage and the amount of money you have on hand, you may be able to get approved for a mortgage if the lender feels as though you have enough to make your monthly payments with ease. 


Available Home Loans with No Job

Although there are ways to secure a home loan without a job, you may also want to consider the different types of loans available for those who aren’t working. 


Non-Qualifying Mortgages

A mortgage that doesn’t require income verification is sometimes called a non-qualifying mortgage or NON-QM. This is a viable option for those seeking a home loan without a job – especially those who are self-employed or seasonal workers.


The downfall is that these loans often come with a higher interest rate than other options and additional requirements. But the approval rating is higher for those without a steady income source. 


An Asset Depletion Mortgage

If you have assets, you may be able to use them as leverage to get approved for an asset depletion mortgage. In other words, you would be relying on your assets to cover your mortgage rather than an income. 


The idea is not to take the assets to pay the mortgage but to show that you could do so if you wanted. Instead, you can pay your monthly loan however you want to – if it gets paid. 


Refinancing Without a Job

Just as you can get a new mortgage without a job, you can also refinance without one. There are two main options available that let you do so: 



The idea behind a refinance is to lower your interest rate and, ultimately, your monthly mortgage payment. These streamlined refinances are put in place to help you – and typically have very few qualifications you must meet. 


So, Can You Get a Mortgage Without a Job?

I, Ahmad Azizi at Option Funding, Inc., think it is possible. 


Having a job may be helpful when it comes to meeting the qualifications for a mortgage, but it is not a necessity. There are ways to get a mortgage without one. 


Just remember that the lender is taking a risk in giving you a loan. They want to have proof that you will be able to make your monthly payments. If you can provide it, then you may be well on your way to securing a mortgage. 

Still trying to figure out where to start? Contact me today to discuss your mortgage options.

Homebuyer Homebuying

Why Buying a House Without a Realtor Is a Bad Idea

Buying a house is one of the most significant financial decisions you will make in your lifetime. While it can be tempting to go it alone and purchase a home without the assistance of a real estate agent, doing so can come with significant risks and drawbacks. This blog post will explore why buying a house without a realtor is a bad idea. 


Why Do People Buy a House Without a Realtor?

While working with a real estate agent when buying a home is generally recommended, some people may purchase one without one. There are several reasons why someone might make this decision.

One reason people may buy a home without a realtor is the desire for more control over the process. When working with a real estate agent, the buyer may feel they have less say in important decisions, such as which properties to view or how much to offer. Buyers can have more direct input by purchasing a home without an agent.

Additionally, some buyers may simply prefer to handle things on their own. They may feel confident navigating the home-buying process and want to take on the challenge themselves. However, it is essential to note that buying a home without a realtor can be risky and may not be the best choice for everyone.

There are also rare instances when buyers must pay for the use of a real estate agent when purchasing a For Sale By Owner (FSBO) house. Contrary to popular belief, however, these instances are few and far between, as the seller almost always pays the real estate agent’s commission fee instead of the buyer. 


5 Times When it May Be an Advantage Buying a House Without a Realtor

Although most people rely on a buyer’s agent for a home purchase–about 88%, according to a 2020 survey by the National Association of Realtors (NAR)–here are five scenarios in which buying a house without an agent might be preferable.

1. You’re Related to the Seller

If you are selling a home within your family, you might be able to avoid hiring a real estate agent. In that case–as long as you have agreed on a price and other key details of the transaction–you likely could handle it without the seller paying several thousand dollars in commission. Consider consulting a lawyer to conduct a title search on the home and ensure all the paperwork is filled out, reviewed, and filed correctly.

2. You Know the Area

When buying a house in an area you’re intimately familiar with, you might not believe it’s worth hiring a buyer’s agent. However, there are more many services a real estate agent can provide than just “knowing the market,” such as helping you find the home and negotiating with the seller’s agent.

3. You Can Save Money

There are RARE cases in which a buyer might have to pay all or part of a buyer’s agent’s commission. For example, if it is a For Sale By Owner, they might clarify that they will not negotiate fees with a buyer’s agent. In this case, you might decide it’s worth working directly with the person selling the home instead of hiring an agent.

4. You Get to Work Alone

You might not trust dealing with a buyer’s agent, even though they are legally required to represent your interests. If you feel like an agent would push you toward a deal too quickly or set you up with the wrong home, you might feel more comfortable taking it on yourself.

You’ll want to be careful not to be overmatched when dealing with the seller’s agent, who only represents the seller’s interests. Think of it like negotiating a divorce settlement with just the counsel and expertise of the other party’s lawyer—it might not go well for you.

5. You’re Buying a New Home

If you are focused only on buying a newly built home, you likely could work out the arrangement directly with the builder. According to the NAR survey, about 6% of buyers worked with a builder or builder’s agent to purchase a home in 2020.


Disadvantages of Buying a House Without a Realtor

While there are some potential advantages to buying a House without a realtor, there are also several significant drawbacks. One of the biggest is the buyer’s lack of real estate expertise that an experienced real estate agent can provide. Agents have extensive knowledge of the local market, the home-buying process, and the legal and financial aspects of buying a home. Without an agent, the buyer may be disadvantaged when making informed decisions and avoiding potential risks.

Another potential disadvantage of buying a house without a realtor is the potential for legal and financial complications. Real estate transactions can be complex, with numerous forms, contracts, and legal requirements that must be met. Without an agent to guide them through the process, the buyer may risk making mistakes or overlooking important details that could lead to legal or financial issues.

Finally, buyers who choose not to work with a realtor may miss out on valuable connections and resources that agents can provide. For example, agents may have access to off-market properties or be able to connect buyers with local lenders, inspectors, and other professionals who can help facilitate the home-buying process. By not working with an agent, the buyer may be limiting their options and potentially missing out on valuable opportunities.


Will Buying a House Without a Realtor Save You Money?

One of the most common reasons people buy a house without a realtor is the belief that it will save them money. While it is true that working without an agent can eliminate some costs, it is essential to understand the full financial implications of this decision.

However, it is crucial to consider the potential costs of not working with an agent. Without an agent, the buyer may be less likely to negotiate a favorable purchase price, potentially resulting in a higher overall cost. Additionally, the buyer will still to pay for various services and inspections, such as a home inspection or title search.

Overall, whether buying a house without a realtor will save you money depends on several factors, including the purchase price of the home, the local market conditions, and the specific services required. It is essential to carefully weigh the potential costs and benefits before deciding. According to NAR, 86% of buyers recently purchased their homes through a real estate agent, and 10% purchased directly from the owner


If You Were to Move Forward in Buying a House Without a Realtor, Here’s What’s Involved

Buying a home without a realtor can be complex, but it is possible to do it successfully with the proper preparation and resources. Here are the general steps involved in buying a home without a realtor:

Determine Your Budget and Financing Options

Before you begin looking at properties, knowing how much you can afford and what financing options are available to you is essential.

Search for Properties

There are several ways to find homes for sale without a realtor, including online listings, local classifieds, and driving through neighborhoods.

View Properties

Once you have identified potential properties, you must arrange to view them in person. You may be able to contact the seller directly to schedule a viewing.

Make an Offer

If you are interested in a property, you must make an offer to the seller. This offer should include the purchase price, any contingencies or conditions, and a proposed timeline for completing the transaction.

Negotiate and Finalize the Sale

The seller may accept your offer, reject it, or counter with a different offer. If you reach an agreement, you must finalize the sale by completing any necessary paperwork, arranging for financing, and transferring the title.

Complete Necessary Inspections and Paperwork

It is highly recommended that you complete various inspections and paperwork to ensure the property is in good condition and that all legal requirements are met.

Close the Transaction

Finally, you must complete the transaction by paying the purchase price, transferring the title, and arranging any necessary funds or document transfers.


It is important to note that buying a house without a realtor can be challenging, and it may be in your best interest to seek the guidance of a real estate attorney or another professional.


Bottom Line

While buying a house without a realtor is possible, it is essential to consider the potential advantages and disadvantages of doing so. Some benefits of buying a house without a realtor include negotiating directly with the seller and moving more quickly through the process. However, there are also several potential drawbacks, including the lack of experience and resources that a real estate agent can provide.

Working with a real estate professional when buying a house is highly recommended. An experienced agent can provide valuable guidance and support throughout the process, helping you to avoid potential pitfalls and make informed decisions. By working with a real estate agent, you can also benefit from their extensive knowledge of the local market, connections with other professionals, and access to off-market properties.

Ultimately, deciding whether to buy a house with or without a realtor is personal and will depend on your circumstances and preferences. However, if you choose to work without an agent, being well-informed and prepared for potential risks and challenges is crucial.


Buying a House? Let Ahmad Azizi of Option Funding, Inc. Do Your Loan

If you are in the market to buy a house, consider working with me, Ahmad Azizi of Option Funding, Inc. As a local mortgage broker with years of experience in the industry, I’ve built strong relationships with many banks, which allows me to close even the most challenging home deals for my clients.

When you work with me, you can expect personalized guidance and support throughout the homebuying process. I will work with you to determine your budget and financing options and list potential properties that meet your needs and preferences.

One of the most significant benefits of working with me is my extensive knowledge of the local market and the mortgage process. I can provide valuable insight into your loan options.

If you have any questions, please contact me directly through Option Funding, Inc. – I’ll happily answer any questions and provide more information about my services and experience.

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Bad Credit, Lower Income? Try an Unconventional Mortgage

It’s so easy to get discouraged about buying a new home when you have bad credit or not enough income. You see other people buying houses all the time and wonder “how do they do it?” Do not fall into the trap of thinking that everyone has a perfect credit score or a well-paying job, because that is simply not the case.

Those with less-than-ideal circumstances for a conventional loan should know that there are other options available, such as an unconventional mortgage. It all comes down to knowing where to turn and who to turn to. This can mean the difference between being a homeowner or not.

Ready to get your dream home in the new year? Option Funding, Inc. can help make it a reality with an unconventional mortgage.

What is an Unconventional Mortgage?

Conventional loans are the most well-known type of home mortgage for homebuyers. These loans come with requirements that must be met to be approved, such as having the proper credit score, enough money for a down payment, and proof of steady employment.

These loans can either be a fixed rate, meaning they won’t change over time, or an adjustable rate, which means they come with an interest rate that changes at predetermined times, such as once a year. The rate can go up or down depending on economic factors. There are not many other options for these types of mortgages which is what makes it tough for everyone to buy a home.

Unconventional mortgages are different. These loans potentially allow people to purchase a new home due to their less stringent approval requirements. Those with lower credit scores and less income may be able to obtain an unconventional mortgage. It is important to keep in mind that some of these loans may require a larger down payment.

Types of Unconventional Mortgages

Unconventional mortgages are backed by government programs, including FHA, USDA, and VA loans. Let’s take a closer look.

FHA loans are those secured by the Federal Housing Administration. This is, by far, the most used unconventional loan and has a lower credit score and down payment requirement than most conventional loans. It is a mortgage that is insured by the FHA and issued by a bank or other approved lender.

USDA loans are secured by the U.S. Department of Agriculture. These are used to help build rural areas. There are a few restrictions when it comes to credit score, the size of the town, and it must be the primary residence of the borrower.

VA loans allow active-duty service members, veterans, and eligible surviving spouses to finance a home with no down payment, no mortgage insurance and lenient credit requirements. They are backed by the U.S. Department of Veterans Affairs.

While these may be the most popular types of unconventional mortgages, they aren’t the only options. Non-QM, stated income loans, private money mortgages, hard money lenders, and seller financing all fall into the category of unconventional mortgages.

Some Advantages of an Unconventional Mortgage:

Less stringent requirements. Not everyone fits the mold for a traditional mortgage. So having options means that everyone gets a chance at owning a home, including those who have been rejected for a conventional loan. This includes those who are self-employed, someone that may have an unstable employment history or doesn’t have a lot of savings, those with bad credit, have previously filed for bankruptcy, and so on.

Greater equity upfront. Another thing that sets unconventional mortgages apart is the fact that depending on the type of loan, they may require you to have a larger down payment. And while this may seem like a disadvantage, it really isn’t. By doing this, you are lowering your monthly mortgage payment and creating equity in your home before you even move in.

Greater flexibility. There is not much flexibility to be had when it comes to traditional mortgages, aside from choosing whether you want a 15 or a 30-year fixed-rate term loan. With an unconventional loan, you have more choices, such as a balloon loan or an adjustable-rate mortgage.

Unconventional Loans at Option Funding, Inc.

Don’t give up on your hope of becoming a homeowner without first discussing your options with Option Funding, Inc. As our name suggests, we have the options you are looking for to qualify for financing and get the loan you need to finally make your move. We have been helping future homeowners just like you for over 20 years.

There are many flexible options that will fit into your personal financial goals, including VA loans, FHA loans, NON-QM loans, jumbo loans, interest-only loans, bank statement loans, and more.

Falling on hard times, having bad credit, or having a lower income should not keep you from being able to put down roots in a community you love. All you need is the right team of loan advisors to help guide you along the way.

Questions? Contact Ahmad Azizi at Option Funding, Inc. in Westlake Village to secure a mortgage option just for you.

Homebuyer Homebuying

6 Pros of Buying a Home During the Holidays

Shopping is a huge deal during the holidays. The stores are bustling with shoppers looking for the latest gadgets, the hottest outfits, and the best toys a kid could ever wish for. Holiday tunes are pouring out of the speakers amidst the sounds of the cash registers constantly chiming with sales.

While it may be a great time for retailers, what about homebuyers? Is a house on your shopping list for the holidays?

Believe it or not, taking out a mortgage and buying a home during the holidays is often a great idea – and here are 6 reasons why.

1. Fewer Buyers in the Market

Remember, during the holidays, people are busy shopping with their friends and family trying to gather the perfect gifts. The last thing on their mind is the housing market.

Because of this, the market tends to slow down over the holiday season. So, if you are a buyer, you may have less competition with fewer offers being made – and it could boost your chance of landing your future dream house.

2. Motivated Sellers

Just as everyone is out enjoying the holidays, sellers who aren’t too motivated will likely wait until after the holiday season to list their property. That way they can enjoy the holidays without having to deal with the stress of staging their home and going through the entire real estate transaction process in a season that is already busy.

In other words, if you see an active listing during the holidays, you can feel confident that the seller is most likely motivated to sell. They may be willing to negotiate with you when it comes to things like the sales price and/or the closing costs.

Keep in mind that many homes are staged when they are trying to sell. And during the holidays, the staging really tries to pull at your emotions as it is the season for warm feelings. Don’t get lost in the emotion and make a poor decision. Be objective.

3. Lower Home Prices

For those who do the research, December seems to always be the month with the lowest home prices. As mentioned above, this probably has to do with the combination of fewer people looking to buy homes and sellers who are eager to sell.

The good news is that because the home prices are lower, you can usually find yourself with more home than you initially thought you could get for the price of your loan.

This can be one of the biggest reasons buyers choose this time of year to buy their new home.

4. Potential Tax Benefits

Have you ever wondered why companies give their donations and make big purchases right at the end of the year? It is all about the tax benefits.

Buying a home will give you some huge tax advantages. If you buy the home this year, then you get to experience the perks going into the new year when you file your taxes. On the other hand, if you wait until January to finalize your purchase, you will have to wait until the following year to reap the tax benefits.

For those who are out there searching for properties while everyone else is looking for gifts, there is always a big push to have that closing by December 31st – all for the tax benefits.

5. Quicker Loan Approval

During the spring and summer months, mortgage lenders are often overloaded with applications and the process to get approved can be very slow. However, during the winter holiday months, applications slow down which can be great news for you. Mortgage lenders can pump out quick loan approvals during this slow season which can really help you get your search started quickly.

It is worth mentioning, too, that since the volume is lower, the level of customer service is often higher. And who doesn’t love a great customer service experience?

6. An Overall Better Home-Buying Experience

When buying a home during the holidays, you open yourself up for a great experience. You don’t have to fight with others trying to get in to see a place for sale, nor do you have to battle competition when putting in an offer.

It is the holidays, and everyone in this industry is a little happier, and a lot less stressed. So, you can enjoy everything that comes with home buying without all the hassle. And that makes this a great time to buy.

Besides – what better way to kick off the new year than in your new home?

Tips for Buying a Home During the Holidays

It may be a great time of year to buy a home, but there are a few things you can do to ensure that everything goes as smoothly as you envision. Check out these tips:

  • Always get pre-approved for your loan. Don’t hold off just because the market doesn’t seem busy.
  • Find a great realtor. Having an expert on your side with your best interest in mind can be a game-changer.
  • Know that some sellers can be pushy. Remember, sellers this time of year are motivated so they may come off a bit aggressive so be prepared.
  • Again, don’t get caught up in the emotions. Someone who has a well-staged home may be able to entice buyers purely on their feelings. Tread lightly or you may regret it later.
  • Don’t be afraid to negotiate. Many buyers are afraid to negotiate in case the seller decides to go with someone else. Don’t be afraid. Let your realtor be the messenger.

Buying a home anytime is exciting (albeit stressful) even more so during the holiday season. Take advantage of all the potential benefits: such as less competition, motivated sellers, potential tax benefits, and quicker loan approval.

You may just find great satisfaction in the overall experience as you move into your new home in the new year.

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7 Benefits of a First Time Home Buyer

Taking out a mortgage to buy a home for the first time can be as scary as it is exciting. After all, there are so many unknowns – and it is likely to be the biggest investment you have made in your life thus far. While you navigate these waters and determine what it is you are looking for in your future home, there are a few benefits of a first time home buyer that you will not want to miss.

So, who is considered a first time homebuyer? It can depend, but it is usually defined as someone who has never owned a home before. But that’s not all. First time homebuyers can typically be considered as those who have not owned (or co-owned) their principal place of residence anytime within the last three years.

What are the Benefits of a First Time Home Buyer?

Below are seven benefits of a first time home buyer that you won’t want to miss out on!

1. Take Advantage of First Time Home Buyer Programs

When you are a first time home buyer, you get to take advantage of some really helpful programs. This includes being able to get approved for a loan if you have a lower credit score or even less money to put down as a down payment – two things that often prevent many people from becoming homeowners.

Purchasing a home is not something everyone can do easily. Yet, everyone should have the opportunity. With these programs, one of the benefits of a first time home buyer is the ability to take advantage of owning a home by getting a little extra help along the way.

2. More Lenient Qualification Requirements

While lenient qualification requirements come with many first time home buyer programs, it is important to focus on their role in helping individuals purchase homes. Having a good or excellent credit score is often necessary to secure a mortgage. However, not everyone has been able to maintain their credit over the years – and this can easily lead to a denied application.

Another common thing that lenders take into consideration is the debt-to-income (DTI) ratio of the buyer. This is the percentage that tells lenders how much money you will spend on paying off debts versus the amount of money you have coming in for income. Many mortgage companies require a certain DTI in order to qualify for a loan, but first time home buyers can take advantage of more relaxed requirements when it comes to this.

3. Down Payment Assistance

As mentioned above, coming up with large amounts of money for down payments can be tough, too – and not something everyone can do. One of the benefits of a first time home buyer is that you may not have to worry about it. There are programs available that may provide you with grants or forgivable loans that provide you with down payment assistance. They may even cover your closing costs too.

Keep in mind that there are many different programs that are offered by local and state housing authorities. Each program has a different set of qualifications, so if you don’t qualify for one, you may qualify for another – so always do your due diligence.

4. No More Rent Payments

Rent payments can add up over the years – and tenants are left with nothing to show for all they have spent. Not to mention that in many places, landlords have the opportunity to raise the rent each year, and they can choose not to re-rent the space when the lease is up. As a result, tenants are often left without any stability for the future.

When buying a new home as a first time home buyer, you gain access to monthly mortgage payments that are predictable. And each payment you make is going to go toward building the equity in a home that is yours.

5. Owning an Appreciating Investment

A home’s value will change over time. If you invest in a property as a first time home buyer, there is a good chance that your home will be worth more in the future. Everything you put into your home can boost its value – which means the money is never spent for nothing (much like a rent payment).

Without opportunities such as first time home buyer programs, many new homeowners will never have the ability to hold such an asset.

6. Protection For Your Future

Getting older and not having a place of your own to call home can make you a bit nervous. And rising rents combined with near-stagnant social security income once you retire can leave the future with a lot of unknowns.

One of the best benefits of being a first time home buyer is that it’s an investment in your future. As you own it, it can begin to appreciate over time. Then, as you get older and have more invested in the property, it can be a great benefit. You may even pay it off and no longer have a mortgage payment which will be great news. Or, should you decide to downsize, selling your home that has appreciated will bring you a great reward. This additional money can become a nest egg for your future.

7. Potential Tax Benefits

The IRS offers tax deductions for those who own their own home. In other words, it gives an incentive for individuals – and first time home buyers – to take that step. The type of tax deduction, as well as how much the deduction is, will vary. The key is to know that when you invest in a home, you are potentially having a positive impact on your tax return which can result in savings each year. 

Think about how this can add up over time!

Reap the Benefits of Being a First Time Home Buyer

It is not uncommon for some individuals to think that they can’t become homeowners for one reason or another. The more you can learn about the options available and the benefits of being a first time home buyer, the greater chance of success you will have when it comes to getting the new house keys in your hand. 

There are so many opportunities for those that have not previously owned or co-owned their home. At Option Funding Inc in Westlake Village, we can provide you with loans for down payments, lower down payments, more lenient debt requirements, and even lower credit scores. Call us today and see what we can do for you!

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The Do’s and Don’ts When Buying a Home for the First Time

Purchasing your first home and taking out a mortgage option is perhaps the biggest investment you have made in your life thus far – and you don’t want to mess it up. But getting caught up in finding the perfect home and dreaming about what life would look like in it is so easy. This leads to many costly mistakes, and you’ll wish that you followed the typical do’s and don’ts when buying a home for the first time.

Do’s and Don’ts When Buying a Home

To help you successfully get those keys in hand at the closing, here are a few do’s and don’ts you should follow, especially if you’re new to the home buying market.

1. DO Get Approved For a Mortgage Before You Make an Offer

The market in many areas is still really busy, with many sellers getting multiple offers. So, without a pre-approval, you are too great of a risk for the seller. There is no guarantee that you will be given a chance – especially if there are other offers from either cash buyers or those who have been pre-approved by a lender.

Apply for your mortgage before you make an offer to get the best chance of securing your new home.

2. DON’T Apply With Just One Lender

There are so many lenders and mortgage experts out there, and they don’t all offer you the same thing. Just as you wouldn’t likely run out and buy a car without shopping around, you shouldn’t do that with a mortgage – which is an even greater investment.

Look into what different lenders have to offer and, for those that look ideal, apply with them. Never settle for just one.

3. DO Work with a Mortgage Consultant

Applying for a mortgage can be a time-consuming project, especially gathering all the specific loan process documentation required. And since you don’t want to apply with just one lender, going through this process over and over can be tedious and rather exhausting. The worst part is that you never know whether the lender is likely to approve you, what their rates tend to be, and so forth.

You can make your life so much easier when you work with a mortgage consultant. This is a great way to have access to those who have extensive knowledge in the field and a network of potential lenders. Based on your circumstances, they can help you determine the best loan programs and/or lenders to meet your needs – without wasting your time.

4. DON’T Spend Every Penny

The more money you have for a down payment, the smaller the mortgage you will need to take out. Unfortunately, coming up with a large sum down payment can be challenging. Many first-time homebuyers try to take everything they have and add it to this payment, leaving them with absolutely no emergency fund. As helpful as a large down payment may be, becoming this vulnerable can be dangerous.

Your down payment should be about 20% when buying a new home, but it doesn’t have to be. Depending on the loan programs you qualify for, you may find something that will allow you to purchase with no money down or even less than 5% down.

Save the money you can for your down payment without allowing yourself to go into debt – and without eating up everything you have. If you can come up with a large down payment, fantastic. If you need to find a loan program that allows much less, then that is ok, too. You don’t want to kick off life in your new home without having anything extra set aside.

5. DO Take Care of Your Credit

Speaking of not going into debt, your credit is incredibly important to lenders. You need to ensure that your credit is intact and in a good range before you try to buy a house. Many lenders have certain minimum requirements for the credit score and debt-to-income ratio in order to be approved for a mortgage.

Check your credit report to get an idea of where you currently stand. You can reach out to the major credit reporting agencies directly, such as TransUnionExperian, or Equifax. Or, you can use a credit report service to get an idea of your standing. Checking your own score like this will not impact your credit.

Keep an eye out for any negative account information, like late or missed payments. This can have a negative impact. Anything that is older than seven years old, accounts you do not recognize, those that have been listed more than once, and the like need to be addressed.

Take steps to clear up your credit report in order to help boost your score and better your chances of getting approved for a loan.

6. DON’T Apply For Credit Before the Loan Funds

Before your loan has been funded is not the time to apply for credit. That means don’t try to open a line of credit, apply for credit cards, buy a car or a boat, etc., after you have received a pre-approval and before the transaction is finalized and closed. This needs to be a dormant period for your credit because you don’t want anything to change unless it is for the better.

See, your lender approved your loan based on your credit score and your debt-to-income ratio. Anytime you apply for credit, your score will drop a couple of points, and your ratio can increase. Before the closing, your lender will re-run your credit to confirm everything is still good. Any new changes could increase your rate or even cost you the mortgage.

7. DO Stick to What You Can Afford

Who doesn’t want a huge, beautiful house with all the perks and luxurious add-ons? Everyone has a price range that they can comfortably afford – and that is the range in which you need to stick to when you buy a house.

Since there is no reason why you should get your hopes up for a house you can’t afford, it is important to have an idea of what can fit into your budget. And, if possible, focus on the lower end of that range. Using a mortgage calculator can help you to determine just how much home you can afford.

Take Your Time

When it comes to buying a home for the first time, it is important that you don’t rush into things but rather take your time. There are many do’s and don’ts when buying a home that you will want to follow so that the entire process flows as smoothly as you envisioned it.

Visit Option Funding Inc in Westlake Village for more information about home loan options, mortgages, and homebuying tips.

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