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Taking Fear Out Of The Mortgage Process

Posted by David E. DeChant on Wednesday, October 31st, 2018 at 9:07am.

A considerable number of potential buyers shy away from jumping into the real estate market due to their uncertainties 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 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 good credit history.

Throughout the entire home buying process, you will interact with many different professionals who will all 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 to follow:

  1. 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 731, according to Ellie Mae.
  2. Start gathering all of your documentation – income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
  3. 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.
  4. 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.
  5. 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. Talk to a REDCO Agent today!

 

 

 

Source: https://www.keepingcurrentmatters.com/2018/10/31/taking-fear-out-of-the-mortgage-process/ 

3 Responses to "Taking Fear Out Of The Mortgage Process"

How Will Home Sales Measure Up Next Year? wrote: [...]Links

Taking Fear Out Of The Mortgage Process
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Posted on Thursday, November 1st, 2018 at 10:31am.

The Difference An Hour Will Make This Fall [INFOGRAPHIC] wrote: [...]Links

How Will Home Sales Measure Up Next Year?
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Posted on Friday, November 2nd, 2018 at 10:03am.

2 Myths Holding Back Home Buyers wrote: [...]Make This Fall [INFOGRAPHIC]
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Posted on Monday, November 5th, 2018 at 10:30am.

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