November 2, 2017 | Bob Myers

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 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 are serious about buying!

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.

Please consider The Myers Team your resource for all things real estate.  We have over 30 years of real estate experience, specializing in the Montgomery County area.  If you are refinancing, want a recommendation, need a service provider or just have a home related question, please give me a call at  301-910-9910 or email me at bobmyersteam@gmail.com. 
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