Don’t Let Fear Stop You from Applying for a Mortgage
A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainty about the buying process. A specific cause for concern tends to be mortgage qualification.
For many, the mortgage process can be scary, but it doesn’t have to be!
In order to qualify in today’s market, you’ll need to have saved for a down payment (73% of all buyers made a down payment of less than 20%, with many buyers putting down 3% or less), a stable income and good credit history.
Throughout the entire home buying process, you will interact with many different professionals, all of whom perform necessary roles. These professionals are also valuable resources for you.
Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests you follow:
-
Find out your current credit history & score – even if you don’t have perfect credit, you may already qualify for a loan. The average FICO® Score of all closed loans in September was 724, according to Ellie Mae.
-
Start gathering all your documentation – income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
-
Contact a professional – your real estate agent will be able to recommend a loan officer that can help you develop a spending plan, as well as determine how much home you can afford.
-
Consult with your lender – he or she will review your income, expenses, and financial goals to determine the type and amount of mortgage you qualify for.
-
Talk to your lender about pre-approval – a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change), and demonstrates to home sellers that you are serious about buying!
Bottom Line
Do your research, reach out to professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner.
To view original article, please visit Keeping Current Matters.
Are Higher Mortgage Rates Here To Stay?
Experts typically recommend focusing your search on the right home purchase — not the interest rate environment.
Key Skills You Need Your Listing Agent To Have
A listing agent, also known as a seller’s agent, helps market and sell your house while advocating for you every step of the way.
Are You a Homebuyer Worried About Climate Risks?
Homebuyers are interested in finding out if the house they want will be exposed to things like floods, extreme heat, and wildfires.
Home Prices Are Not Falling
Don’t fall for the negative headlines and become part of this statistic. Remember, data from a number of sources shows home prices aren’t falling anymore.
Unpacking the Long-Term Benefits of Homeownership
Higher mortgage rates, rising home prices, and ongoing affordability concerns may make you wonder if you should buy a home right now.
Why Your House Didn’t Sell
For insight on why your home didn’t sell, rely on a trusted real estate agent. A great agent will offer expert advice on relisting your house with effective strategies to get it sold.
The Return of Normal Seasonality for Home Price Appreciation
Don’t let the terminology confuse you or let any misleading headlines cause any unnecessary fear.
Beginning with Pre-Approval
Pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow.
Your Home Equity Can Offset Affordability Challenges
Some homeowners are reluctant to sell and take on a higher mortgage rate on their next home, but what about home equity?
Are More Homes Coming onto the Market?
If you’ve been putting off selling your house, now may be the sweet spot to make your move. The longer you wait, the more competition you’ll have.