What should you expect from the mortgage process? Today I’ll outline the key steps to getting approved.
Today we’re going to talk about the mortgage process with respect to what you should look forward to when purchasing a property.
First, you should hire an experienced agent. Having a knowledgeable agent is invaluable to all aspects of the home buying process, especially when it comes to qualifying for a mortgage. They can lead you to finding the right mortgage lender who will advise you on the best program for your situation.
Once you’ve found a lender, they’ll pull your credit report to get a look at your overall financial situation. This will allow them to see what you qualify for based on current debts, income, work history, and more, which will, in turn, help understand your purchasing power.
Many people think that you need a 700 credit score in order to qualify for a mortgage, but that’s not true. There are plenty of programs that will allow for a lower score to qualify; one of the programs we have will qualify those with scores as low as 580. This is why it’s important to speak with your lender, so they can analyze your situation and find the best program for you. They can also advise you about how to raise your credit score so you can save money on your payments.
Many people wonder about how much is appropriate to put down. Well, that largely depends on the loan program you use. FHA loans only require 3.5% down. If you’re a veteran of the military, the VA loan program requires nothing down at all. Conventional loans typically require around 5% down. If you’re concerned about being able to afford your down payment, there are down payment assistance programs that can make it easier on you.
Once you’ve spoken to a lender about your situation and you have loan product picked out to suit your needs, you’ll be issued a pre-approval letter. You can then go out on the market and look for homes knowing what your purchase power is. If you’re paired with the right agent, you should be able to find your dream home and able to act on it quickly with the financing in place.
If you have any questions about this topic or would like to speak with a mortgage professional, feel free to reach out to us. We would be happy to set you up with a trusted lender to help you get started on the next phase of your life.