Taking The Fear Out Of The Mortgage Process

Dated: 11/04/2019

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Taking the Fear Out of the Mortgage Process

Taking the Fear Out of the Mortgage Process | MyKCM

A considerable number of potential buyers shy away from the real estate market because they’re uncertain about the buying process – particularly when it comes to qualifying for a mortgage.

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 a down payment (the average down payment on all loans last year was 5%, with many buyers putting down 3% or less), a stable income, and a good credit history.

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

  1. Find out your current credit history and credit score– Even if you don’t have perfect credit, you may already qualify for a loan. The average FICO Score® for all closed loans in September was 737, according to Ellie Mae.

  2. Start gathering all of your documentation– This includes 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 who can help you develop a spending plan, as well as help you 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’re serious about buying.

Bottom Line

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

Blog author image

Matthew Hoagland

My name is Matthew Hoagland, Team Leader of The Hoagland Real Estate Group of RE/MAX Premier Properties. I would like to thank you for considering our services in your search for a new home, listing y....

1 comments in this topic

  • Posted by Chuck Hartley
    11/06/2019
    Matthew.. I liked your post about the mortgage process. I am with Swan Financial Perhaps you have heard of us.. We have spent the last three years developing an information program to allow realtors to very easily explain the mortgage process to borrowers.. We also in conjunction developed a corporate program that is presented to compiles to present home ownership to their employees. We structured it so a benefit goes to the employee in the name of the company.. It takes a presentation to the company but we are more than happy to facilitate that presentation with you as the listed realtor for the program. This is brand new and we are the innovates. No one else is doing this and we are so ahead of the curve no one will catch up with us for a very long time. Call me to set up a meeting for information of how you can partner with us. You will make $$$\'s and it cost you nothing. Chuck Hartley 502-753-1077 Chartley@swanhelp.com

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