Taking the Fear Out of the Mortgage Process
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.
Bottom Line
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.
Pugs and Kisses
I know I look a lot younger in my photo! Wishing You The Best Valentines Ever!
Is This Your Year To Break Up with Renting?
Is This Your Year To Break Up with Renting? If you aren't in love with renting, you're not alone. Let's...
Want Top Dollar for Your House? Now’s the Time To List It.
Want Top Dollar for Your House? Now’s the Time To List It. When you’re selling any item, you usually want to sell it for the greatest profit possible. That happens when there’s a strong demand and a limited supply for that item. In the real estate market, that time is...
Wasatch Front Home Prices Soared
Median single-family home prices on the Wasatch Front soared in the fourth quarter. Home prices in the 10 most expensive Wasatch Front ZIP Codes now rival many other large U.S. cities. Alpine’s median price climbed to $1.3 million, a higher median price than Los...
Consumers Agree: It’s a Good Time To Sell
Consumers Agree: It’s a Good Time To Sell In today’s sellers’ market, many homeowners are weighing their options and trying to decide if they should sell their house. If you’re in that group, you may be balancing things like the ongoing health crisis, rising mortgage...
How Remote Work Impacts Your Home Search
How Remote Work Impacts Your Home Search Some Highlights If your workplace is delaying its return to office plans or is allowing permanent work from home options, that may open up new possibilities for your home search. Ongoing remote work could give you the chance...
Pre-Approval Gives You The Edge
Pre-approval gives you a competitive edge when you make an offer on a house. Let's connect so you're in the best position when you find your dream home. [video width="1920" height="1080"...
Sam and Lacie Diamond
Buy or Sell with Marty Gale "Its The Experience" Principal Broker and Owner of Utah Realty™ Licensed Since 1986 General Contractor 2000 (in-active) e-pro (advanced digital marketing) 2001 Certified Residential Specialist 2009 Certified Negotiation Expert 2014 Master...
Why a Move Could Bring You More Happiness This Year
Why a Move Could Bring You More Happiness This Year Over the past two years, we’ve lived through one of the most stressful periods in recent history. Because of the health crisis, many of us have spent more time at home and that’s led us to re-evaluate both what we...
Housing Inventory Lower than Last Year
Buy or Sell with Marty Gale "Its The Experience" Principal Broker and Owner of Utah Realty™ Licensed Since 1986 General Contractor 2000 (in-active) e-pro (advanced digital marketing) 2001 Certified Residential Specialist 2009 Certified Negotiation Expert 2014 Master...