6 Important Factors To Consider When Applying for a Mortgage

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Being approved for a mortgage can be difficult, especially if you’re doing it yourself without the help of an experienced realtor.

If you want to know what you should focus on to get your application approved by your lender, check out these six important factors to consider when applying for a mortgage.

1. Establish Financial Health

Before you even begin looking at mortgages, it’s important to establish financial health. Get on top of your debt with debt consolidation loans and look into building an emergency fund so that if an unanticipated expense arises, you can still buy your home without having to put it on hold.

You may also want to talk with a realtor about selling your current house as opposed to using one through your lender. Doing so could save you thousands of dollars and is increasingly common these days.

With finances in order, start working with a loan officer and shopping around until you find rates that work for you and that you’re comfortable with.

2. Improve Your Credit Score

If you’re hoping to obtain financing through your bank, it helps if you can show that you have a good credit score. 

Showing your bank that you’ve done what you can do to reduce debt and maintain a steady income will improve your chances of being approved for a mortgage.

While there are many different steps you can take to improve your credit score, one of them is simply having healthy bills and little-to-no outstanding debt on your report.

3. Get Down Payment Assistance

If you don’t have 20% of your home value saved up as a down payment, don’t fret. There are lots of down payment assistance programs available to make your dream of homeownership more attainable.

First-time homebuyers can get help with down payments through HomeReadyTM loans from Fannie Mae, Home Possible® mortgages from Quicken Loans, or closing cost assistance with HomeSteps® by Wells Fargo.

Some lenders also offer down payment gifts if you take out certain mortgage products.

4. Analyze Home Prices

If you’re thinking about selling your home, it’s important to look at how house prices have been performing in your neighborhood.

If you live in an area where house prices are on a steady incline, you may get more cash from selling your home than if you sell at a time when prices are tanking.

5. Get Pre-Approved by Lenders

A lender will look at your financial documents and determine how much you qualify for. A pre-approval means that you can see which homes are available in your price range but don’t obligate you to purchase anything.

It takes some time but getting pre-approved before shopping helps ensure that you don’t overpay when buying real estate because there won’t be any surprise expenses when it comes time to close on your home. And once again, it has nothing to do with using a realtor or not.

6. Find the Right Real Estate Agent

Once you’ve found your home, it’s time to decide how you’re going to buy it.

If you are applying for a mortgage, there are some important factors you should consider when choosing an agent that will work with your lender or bank. First of all, make sure that your agent is licensed and registered with your state government.

A real estate license is not required in all states, but most lenders require their loan officers and mortgage brokers to be licensed to approve loans.

Conclusion

If you’re looking to sell your house quickly, you might consider going with a realtor. A realtor will know how to make your home appeal to prospective buyers and sell it at an appealing price point.

However, when you want to tor in Corpus Christi, residents should consider talking to a reliable company like Favor Home Solutions.