“For many, the mortgage process can be scary, but it doesn’t have to be!”
A considerable number of potential buyers shy away from the real estate market because they’re uncertain about the buying process – particularly when it comes to qualifying for a mortgage.
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 a down payment (the average down payment on all loans last year was 5%, with many buyers putting down 3% or less), a stable income, and a good credit history.
Once you’re ready to apply, here are 5 easy steps Freddie Mac suggests to follow:
- Find out your current credit history and credit score– Even if you don’t have perfect credit, you may already qualify for a loan. The average FICO Score® for all closed loans in September was 737, according to Ellie Mae.
- Start gathering all of your documentation– This includes 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 who can help you develop a spending plan, as well as help you determine how much home you can afford.
- Consult with your lender– He or she will review your income, expenses, and financial goals in order 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’re serious about buying.
Do your research, reach out to professionals, stick to your budget, and be sure you’re ready to take on the financial responsibilities of becoming a homeowner.
To view original article, visit Keeping Current Matters.
If you’re thinking of selling, know that the motivation for buyers to purchase right now is as high as ever with rates where they are today.
Having equity to re-invest in your next home is a major force that can make moving a reality.
The demand for lousing will keep growing this year. This may be your moment to list your house and make a move!
For the seventh year in a row, real estate has come out on top as the best long-term investment.
Check out the latest listing by BrookHampton Realty! You won’t want to miss this spacious 3-4 bedroom farmhouse! Call Donna today to schedule your private showing!
Summer is gearing up to be the 2020 buying season, so including your house in the mix may be your best opportunity to sell yet.