Many of our readers have owned their home for a long time. Others are starting out on their first home. If you are in the first group, it is probably that the mortgage application process has changed a bit since you last applied for a mortgage. Other people may be doing this for the first time. Here’s some info that may explain a few things for you.
In order to qualify for a mortgage, you will need a few things, such as:
A Down Payment. Many people are under the impression that they will need 20% of the purchase price in cash. You don’t need 20%, but if you do put down 20%, you won’t be paying the mortgage insurance, which you will with less than 20%. Indeed, many buyers have a down payment of less than 20%, even as little as 3%. And if you eligible for Veterans Administration financing, you can purchase with nothing down.
Income Verification, your Credit History and a list of Financial Assets and Debts.
An Impartial Property Appraisal. The lender will need to be sure the property is worth the purchase amount for their protection.
So – what should be your first steps?
Find out what your credit score is. Many credit card companies offer this. Check your online statement or the paper statement. Or there are many online sources. Remember – you don’t need perfect credit to get a mortgage.
Gather your documentation. You will need W2s. tax returns, pay stubs, bank statements, and statements about savings or investments. And possibly more, but start with this.
Speak with a mortgage professional to get Pre-Approved. This way you will know if you can get a mortgage, and how much you can spend for a home.
Do your homework and prepare, then reach out to the professionals you’ll need assistance from, your mortgage professional and your Realtors, Bunny and Art Reiman.