Don’t Let Fear Stop You from Applying for a Mortgage

Don’t Let Fear Stop You from Applying for a Mortgage

Don't Let Fear Stop You from Applying for a Mortgage | MyKCM

A considerable number of potential 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 order to qualify in today’s market, 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), a stable income and good credit history.

Throughout the entire home buying process, you will interact with many different professionals, all of whom perform necessary roles. These professionals are also valuable resources for you.

Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests you 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 724, according to Ellie Mae.
  2. 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).
  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 to determine the type and amount of mortgage you qualify for.
  5. Talk to your lender about getting Buyer Credit Approved– not just a pre-approval letter, but an actual Buyer Credit Approval which an underwriter will review and approve.  This Buyer Credit Approval provides what you with your buying power and it is your responsibility is to keep your financial status intact per your Credit Approval.   By having this Buyer Credit Approval, it demonstrates to home sellers that you are serious about buying.  Having a Buyer Credit Approved loan will allow your purchase offer to be as strong as a cash buyer.  Learn more about Protect Your Transaction and obtain Buyer Credit Approval, with a Certificate of Assurance offering you up to $10,000 of Home-buying protection.

Bottom Line

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

 

Karen Jones is a Licensed Mortgage Loan Officer (NMLS 307015) serving Arizona and California and her office is located in Phoenix, AZ.   As a Banker of over 39 years, she is dedicated in ensuring that her clients are well educated and prepared for their new home purchase.  Contact Home Loan Officer, Karen Jones,  when you are ready to learn more about your home loan financing options in Arizona or California.

 

AmeriFirst Financial, Inc., 1550 E. McKellips Road, Suite 117, Mesa, AZ  85203 (NMLS # 145368). 1-877-276-1974. Copyright 2017. All Rights Reserved. This is not an offer to enter into an agreement. Not all customers will qualify. Information, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all products are available in all states or for all loan amounts. Other restrictions and limitations apply. Click Here for Licensing Information. The services provided by Karen Jones are not a condition, nor do they create any obligation for any form of remuneration for any real estate settlement service related to any referral.

 

 

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