What You Need to Know About The Mortgage Process
What you need to qualify in today’s market:
- Down Payment – Generally between 5-20% of the purchase price. However, many home buyers are putting down 10% or less – with some putting down as little as 3%
- Income Verification, Credit History & Asset Documentation – the paperwork needed to apply for a mortgage on the balance of the purchase price of the home
- Impartial Third-Party Appraisal – Your lender needs this to verify the value of the house you want to purchase
- Stable Income – usually a 3 year employment history in the same field is required
- Good Credit History – a seasoned credit file with on-time payments is required to get most mortgages
Steps to Take:
- Find out your current credit history & score
- Start gathering all of your documentation
- Contact a mortgage or real estate professional
- Consult with your lender to review your income, expenses and financial goals
- Talk to your lender about applying for a mortgage and getting a pre-approval letter
Do your research, reach out to the professionals, stick to your budget and be sure you are ready to take on the financial responsibilities of being a home owner.
- Many buyers are purchasing a home with a down payment as little as 3%.
- You may already qualify for a loan, even if you don’t have perfect credit.
- Take advantage of the knowledge of your local professionals who are there to help you determine how much you can afford.
You may also be interested in:
Home Buying in Six Steps
The High Impact of Low Interest Rates on Your Purchasing Power
Lake Norman MLS Listing Alerts