For many homebuyers, one of the most intimidating parts of searching for a new home is applying for a home mortgage loan. We’ve all heard from homeowners past how difficult and stressful it can be to get a home mortgage. If you’re applying for the first time, that daunting feeling is doubled or even tripled. But how hard is it to get a home mortgage really?
As early as 10-15 years ago, applying for a home mortgage was relatively easy. Anyone with halfway decent credit could get the mortgage they needed to move into their new home. However, we now live in a different economy than we did then. Homeowners face more challenges than they did in the early 2000s when it comes to applying for a home mortgage.
But it’s not insurmountable. Keep these tips in mind and you should be able to get the most from your home mortgage.
Figure Out Where You Stand
Most of us know how much our monthly income is, and probably how much debt we owe each month. That’s a start to figuring out your relevant finances for a home mortgage. You also, perhaps most importantly, want to know your credit score. Your income is important to mortgage lenders but more important is a record of your past history in paying loans and other bills. There are several companies, websites, and apps where you can find your credit score to present to a lender. You also want to get a sense of how much cash you can put down when purchasing a new home.
Use a Mortgage Calculator
No one likes to walk into a lender’s office expecting to be approved for a certain amount, only to receive their pre-approval and learn that it’s considerably less than that. You want to have realistic expectations. But if you’ve never applied for a mortgage, how can you know what that looks like? Fortunately, we are living in the internet age. You can find any number of mortgage calculators that will help you figure out what kind of mortgage you need in order to afford your new home, and what kind of mortgage you’re likely to get.
Research the Lender
Don’t assume that you’re the only variable in the equation. Not all mortgage lenders will treat you the same way or have the same amount to offer you. Do your homework on each mortgage lender you consider. What do they typically offer? How do their customers feel about them? What are their qualifications? You’re not just trying to tell a mortgage company why you’re right for them. You want to know that they’re right for you.
Prepare for Paperwork
The vast amount of paperwork involved in applying for a mortgage is inevitable. First you have to pre-qualify to learn the different mortgages that might be available for you. Then you have to choose a plan and submit stacks of financial paperwork in order to be pre-approved. Once you’re pre-approved and you have an estimate, you’ll have to show this to the seller and finally after negotiations end, you finalize the mortgage loan. You’ll need proof of your income, your credit score, proof of your debts, any earnings outside of your primary job, and so on and so forth. There’s no way around it, so the best thing you can do is brace yourself and stay organized.
With the challenges of applying for a home mortgage, you’ll want the support of a realtor to help you through the home buying process. In Amelia Island, let that be the Barclay Team. With years of first-hand experience in Fernandina Beach, we can help you find the home of your dreams and negotiate it to a price that’s realistic with your income and your mortgage loan. To learn more about their expertise or how they can help you buy or sell your home, contact The Barclay Team today.