Getting Approved for a Mortgage
Finding the ideal home can (and should be!) exciting for most people. However, many make a premature leap into property searching before taking the first and most important step in the home buying process: mortgage pre-qualification. Unless you plan to bring all cash to the closing table, the very first thing you should do, prior to spending hours browsing homes, is to find out if you’re qualified for a mortgage and for how much.
There are few things more disappointing than setting your sight on the perfect property only to later learn that it’s not in your budget. This is why it’s essential to get in contact with a reputable loan officer than can assist with the pre-qualification process of a loan. (Not sure where to go? Contact us to get several recommendations of loan officers you can begin a conversation with.)
Talking with a loan officer will help you identify any credit issues up front and will also provide guidance for what home pricing you should be looking at. For this reason, it’s best to start the mortgage pre-qualification process several months prior to beginning your actual home search. This will allow you time to work through any challenges that may arise. And if you don’t run into any obstacles, you can obtain your pre-qualification letter and go into your home search with confidence and peace of mind. Not to mention, a pre-qualification letter will also look positive when sending in an offer.
If you’re serious about buying a home, here are 5 quick tips to follow that may help boost your chances of being approved for a mortgage:
- Stay at your current job.
It’s more favorable to show at least a 2-year work history with your current employer
- Stay on top of your credit cards and don’t open any new ones.
Pay down your balance as much as possible and make all payments on time. The more debt you have, the more it will negatively impact your debt to income ratio.
- Save your money!
If you plan to qualify for an FHA loan, you’ll need at least 3.5% of the purchase price for down payment (20% for Conventional)
- Avoid significant purchases.
If you’re in the mortgage process, it’s not a good time to buy a car, boat or any other big ticket items that can create more debt. It’s also not advised to co-sign for another borrower, as this will show up as additional debt.
- Don’t pay off any outstanding collections or charge offs prior to speaking with a loan professional.
Strangely enough, this can actually cause your credit score to drop.
Now you know where to begin. Get pre-qualified & keep your debts low and you're off to a great start! To get started asap, click to use our pre-qualification tool.
Written by Guest Blogger, Atali Connor, REALTOR®
Atali alongside her husband and real estate partner, Ryan, make up the Connor Team at The New Home Spot. Collectively they have called Cape Coral home for over 40 years and have nearly 7 years combined experience in SWFL real estate. Specializing in residential and investment properties, they have a strong track record of professionalism, powerful negotiating, eye-catching marketing, keen understanding of contract language and vast knowledge of the area.