A considerable number of potential home 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!
In today’s market, to qualify you’ll need to have saved for a down payment (73% of all buyers made a down payment of less than 20%, with many buyers putting down 3% or less), have a stable income and good credit history.
As you maneuver through the home buying process, you will have various interactions with many different professionals, all of whom perform necessary roles and are also valuable resources for you.
Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests you 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 724, according to Ellie Mae.
- 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 – he or she will review your income, expenses, and 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!
At The Tuttle Group, we will work with you to figure out the amount of money you should be spending on a home and can comfortably afford. It’s surprising how many times we begin working with someone and they learn they are not shopping in the appropriate price range. Either they are overshooting how much money they should be spending, or they are unaware of how much they can comfortably afford. It all has to do with your long-term financial goals. There are many types of loans available and understanding mortgage options can be overwhelming. Together, we’ll determine the amount of money you should put down on a house, and the amount of money to finance on a home loan, so you can achieve your financial plan.
Whether you’re a first time home buyer, looking to refinance, self-employed, military veteran, or public servant- The Tuttle Group is here to help. We have the tools and resources to help you. When you’re ready to get started, our team is here to help.