The Mortgage Process
One of the biggest deterrents for many home buyers, especially first-time home buyers, is the mortgage process. From not knowing how it works, to being unable to commit to something as long as 30 years, many people struggle with the mortgage process. The process to applying for a mortgage should not be scary and only takes a few steps. After finding a credible lender, they will be able to help as well. Using the mortgage process as an excuse not to buy a home is a little vague. Let us shed some light on why mortgages and the mortgage process is not scary.
Your Credit Score
To start, many people have no idea how to even get a mortgage. The first step that most home buyers should take is the find out their credit score. Knowing your credit score is something that many people should know ahead of time. However, if you do not know your credit score, do not fear. Your credit score can be obtained by reaching out to your lender or doing a hard inquiry on your credit. This will pull your history of credit, from your student loans, car loans, and any other debts, as well as your ability to pay them off. Your credit score plays a major key in determining your affordability and ability to purchase a home. Know how your score works, your repayment history, how to build strong credit, and what your score is before getting into the mortgage process.
Organize Your Documents
With the age of the internet, the next step is a lot more simple. Step two of the mortgage process is obtaining and organizing all your relevant documents. These relevant documents can be anything from tax documents to bank statements. A lot of these are online nowadays, which makes organizing and tracking them down relatively easy. However, I would recommend that you create a folder for all relevant documents and print them out. Put all the documents in your folder and bring them to your lender. There is still something about hard copies that make things significantly easier.
The Most Important Mortgage Process Step
The third, and probably most important step, is to lean on those who do it for a living. There are professionals who do this everyday, whether it is your real estate agent or lender. These professionals are obligated to help you in the best of their ability inside their expertise. Most real estate professionals have preferred lenders that they have developed relationships with. Once you reach out to your agent and they recommend your lender, you will now have another professional in your corner to help. Now you have a professional every step of the way, and they will really simplify the process.
Loan Types And The Mortgage Process
Once you have met with your agent and lender, you can proceed to the next step. This is typically a step dealing more with the lender, but your agent can help as well. Discussing your loan types, terms, and options is the next step. Know what type of home loan you qualify for, which loan types are favored by sellers, and what is most affordable. Learning about the various loan types, their terms and durations is a key step in finding out what is right for you. Each loan, FHA, Rural Housing, Conventional Financing, and VA, all have their benefits and separate terms. Knowing that a FHA loan will require a better prepared, move-in ready home is one aspect to know beforehand. FHA and VA inspections also tend to point out more trivial items, such as handrails and paint.
The BEST Step: Pre-Approval
Finally, you have made it to the last step and are ready to make an offer. The last step of the mortgage process is to get pre-approved. Once you are pre-approved, you and your real estate professional can begin to narrow in on what is right for you. Potential home buyers will have a lot of work to do after this step, but this step is key for actually becoming a homeowner. After working with your lender and determining what you can afford with this soaring home prices, your home search truly begins. And just remember, you will have a professional along your side every step of the way if you use a real estate team such as Premier Homes Team. Check out the houses listed in Louisville, Kentucky after you are pre-approved.