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
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 (the average down payment on all loans was 11% last month, with many buyers putting down 3% or less), a stable income and good credit history.
the entire home buying process, you will interact with many different
professionals, all of which 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:
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.
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).
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 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 are serious about buying!
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.