Hot Financing Hacks for First-Time Home Buyers
If you’re preparing to buy your first home, the idea of getting a mortgage can feel overwhelming — but it doesn’t have to be. The team at Ernest Homes is here to make the process easier. Below are smart, simple financing hacks to help first-time home buyers navigate their mortgage journey with confidence.
Check Your Credit Early
Your credit report is the foundation of your mortgage approval, so reviewing it should always be your first step. Errors happen, and small issues can surface that may impact your loan eligibility. Correcting mistakes ahead of time can save you money, time, and stress.
Need a refresher? Learn more about understanding your credit score.
Choose Your “Set Point” Before You Shop
Before browsing listings or contacting a Realtor, establish a realistic price range based on what a lender will approve. Financial experts recommend that your total debt — including your future mortgage — should stay under 36% of your gross income.
Knowing your true budget upfront prevents falling in love with a home outside your means and ensures you focus on homes you can comfortably afford.
Gather Your Documentation
Mortgage lenders require a substantial amount of paperwork. Preparing documents early prevents delays and streamlines your approval process. Most lenders request:
- Driver’s license and Social Security card
- Pay stubs from the last 30 days
- W-2s for the previous two years
- Federal tax returns from the last two years
- Checking and savings account statements (previous three months)
- Retirement and investment account statements
- Credit card, loan, and debt statements
- Proof of rental payment history (if applicable)
- Documentation of gifted down-payment funds
If you have unique financial circumstances — such as being self-employed, active-duty military, or relying heavily on investment income — you may need additional documentation. A helpful lender will identify these needs early.
Don’t Skip Pre-Approval
Pre-approval is essential for first-time home buyers. It positions you as a serious, qualified buyer and highlights any financial issues that could cause delays later on. When paired with a strong budget “set point,” pre-approval also increases your chances of securing the home you want.
A solid pre-approval from your lender gives you confidence and gives sellers peace of mind.
Your Journey Starts with Ernest Homes
Buying your first home is a major milestone — and you don’t have to navigate it alone. Our experienced team at Ernest Homes is here to help you understand your financing options, prepare for the mortgage process, and find the home that fits your life.
Ready to take the first step? Contact us today to begin your journey toward homeownership.
