How to get a Mortgage

The best part about house hunting is finding “the one”, but it’s important not to rush things and take the time to understand the home buying process. You don’t want to overwhelm yourself. So, before you set foot in your new home, make sure you know the step by step of getting a mortgage.

Here are some simple steps that you can follow to help make the most out of the mortgage process. 

Step 1: Get your credit in check    

Your credit score tells lenders just how much you can be trusted to repay your loan on time. 

Usually, first time home buyers are unsure of what their credit score is. When you look at your credit report, make sure there aren’t any credit errors. Having a credit error removed has the potential to boost your score, but keep in mind it can take up to 30 or more days to get corrected.

If you discover your credit report has errors, do what you can to improve your credit score, so you’ll be ready for the next step of researching and choosing the best mortgage type for you.

Step 2: Get pre-approved for a mortgage

Once you are prepared with your credit score, getting a pre-approval is the next step. A mortgage pre-approval is a letter from a lender that determines the loan amount you could qualify for. This will help you eliminate disappointment! Also, without it, the seller has no guarantee you can afford their home.

Step 3: Choose the right mortgage options

The most important thing is deciding the right type of mortgage for you! There are three main factors to consider when you are comparing loan options: The term, the interest rate type, and the loan type.

• The loan term indicates how long you pay off the loan: The most popular loan terms than homebuyers get would be a 15-year or 30-year mortgage.
• There are two types of interest rates: fixed and adjustable. Fixed rates will stay the same while adjustable rates change over the life of the loan.
• There are three main types of loans: Conventional, FHA and special programs loans.

Once you have a sense of the type of loan you want, you can compare lenders and offers.

Step 4: Be patient

Don’t rush through the process. Buying a home requires a lot of time and effort, so you want to be fully prepared and make the best decisions possible.

Make sure you are ready to purchase a home, emotionally and financially!

If you want a full team of mortgage professionals to help with your decision on what is the best mortgage option for you, we’re happy to help. Please don’t hesitate to reach out to us, we look forward to hearing from you!