Are you ready to buy a home and apply for your very first mortgage? The process of getting a mortgage can be quite confusing, especially if you've never gone through it before. That's why it helps to know the following tips when getting your first mortgage.

Clean Up Your Credit History

Your credit history is going to be scrutinized when buying a home because you are likely receiving the biggest loan you'll ever get. That is why it is worth pulling your credit report from every credit bureau and looking for problems. This could include errors of things that should not be on your credit report, such as debts that you paid off. It will take some time to clean up your credit history by filing disputes, so make sure you do this far in advance of applying for a mortgage.

Know That Employment History Matters

Your lender is going to be looking for applicants that have job security and make a steady income. This can be problematic if you are a freelancer that gets income from various different sources. If this sounds like you, then you will need to prove to your lender what your earnings history is over the years, since you can't simply show a pay stub and show how much you make in a year. This can be done by bringing in tax returns that show how much you have made in previous years as a freelancer. 

Know Your Mortgage Options

Many people assume that a 30-year mortgage is the best option for getting a home, but it may not be in your situation. 30-year mortgages tend to have the lowest monthly payment that is consistent over time, but they also involve paying a lot of interest as well. If you plan on only living in the home for a few years as your starter home, then consider an option that is going to allow you to save money on interest while you're living in the home. This includes an adjustable-rate mortgage, which has a low introductory period before changing the rate. 

Avoid Additional Big Purchases 

It's important that you avoid making big purchases when you are applying for a mortgage. This could include opening a new line of credit, taking out another loan, or anything that throws off your credit history. Your lender looks at your credit history at the start and end of the application process, and seeing large purchases can make you seem like a risky borrower. In addition, additional loans can disqualify you from getting a mortgage if you are above the debt-to-income ratio requirements. 

Reach out to a mortgage loan lending company for more information.