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! It is simple and easy. First, do your research. Second, reach out to professionals. Third, stick to your budget, and fourth, be sure that you are ready to take on the financial responsibilities of becoming a homeowner.
In order to qualify in today’s market, you’ll need to have saved some money for a down payment, have stable income and a good credit history. You may be surprised to learn that up to 25% of all buyers make a down payment of 3% or less. While, 73% of buyers make a down payment of less than 20%.
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:
Find out your current credit history & credit score – even if you don’t have perfect credit, you may already qualify for a loan.
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 – they will review your income, expenses, 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.