Wednesday, November 7, 2018 / by June Quilantang
Don't beat yourself up for having second thought about the mortgage process. Your fears are not unfounded, and as it turns out, you are not the only one. Fear comes from things we do not completely understand, and the Mortgage Process is a long and complicated process that does not come with walk-throughs and tutorials readily available at a moment's notice.
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:
- 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 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 are serious about buying!