Taking the Fear out of the Mortgage Process

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.

Taking the Fear out of the Mortgage Process

Free Mortgage Prequalified

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 to have saved for a down payment (the average down payment on all loans was 11% last month, 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 real estate professionals, all of which perform necessary roles. These real estate professionals are also valuable resources for you.

Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests to follow:

    1. 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.
    2. 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).
    3. 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.
    4. 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.
    5. 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 home buying!

Taking the Fear out of the Mortgage Process

Bottom Line

Do your research, reach out to your local real estate professional, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner.

If this all sounds very complicated, let us make it very simple and easy and free for you to get prequalified for a mortgage…call Kelly today 605-858-0775.

You will not only get prequalified, but you will find out if you qualify for any of the great home buyer programs offered in South Dakota, like no money down financing, down payment assistance or grant money, which is money you can use for down payment and/or closing cost…call now 605-858-0775.

Share this post with your friends