5 Things You Should Know About The Mortgage Loan Process

Dated: 10/31/2018

Views: 67

5 Things You Should Know About The Mortgage Loan Process


Probably, one of the scariest things about buying your first home would have to be not understanding the whole process of obtaining a mortgage loan. So, what are the 5 things you should know about the mortgage loan process? 

The mortgage loan qualification process is really not that difficult. When you break it down into these 5 easy steps that Freddie Mac suggest you follow.

  1. Get Your Current Credit History And Credit Score - Most everyone believes that you need a super high credit score to qualify for a mortgage loan. The facts are that you can qualify with a much less than perfect score. Ellie Mae reported that the average credit score of all mortgage loans in September was 731. And you can start qualifying for the down payment assistance programs at a 620 and qualify for all available down payment assistance programs at a 640 credit score. Below 600 credit score loans are available, down as low as 550, with a premium on your interest rate.

  2. Gather Up All Of Your Documentation - The things you will need are income verification, these include your last two years on income tax returns and your last two pay stubs. Then your credit history. And even though you bring that along they will still need to run your credit report. You will also need your assets, so, gather up your last 3 months of bank statements. And if you are a veteran looking to use your VA Benefits you will need your DD214.

  3. Contact A Trusted Professional - We can help you with a recommendation to one of our preferred lenders. We have built a long-term relationship with them and they will help set a spending plan. As well as determine your budget for your Perfect Home.

  4. Consult With Your Lender - When you bring in all the documentation from step one. Your lender will review all of your income, your outgo or expenses, as well as your financial goals. Then you will work together to find the budget you are looking for to be able to purchase your home.

  5. Have Your Lender Explain Pre-Approval Vs. Prequalification - Either one will show the seller of your Perfect Home that you are very serious about making an offer on their home. One is better than the other though in the negotiation process.

Armed with all of this information you will be able confidently will be able to go out shopping for that Perfect Home.

Now that we have broken it down into those 5 easy steps it doesn't seem so scary anymore, does it?

Schedule a 15-minute phone call to discuss this or anything else you might have a question about. Here's a link to my calendar where you can find a time that is convenient for you.

Schedule Your Call

You can also download your FREE copy of our Home Buyer's Guide by clicking the link below.

Free Home Buyer's Guide

You can subscribe to our YouTube Channel also. And get our weekly video updates. Click the link below.

Your PerfectHome Group YouTube Channel

Blog author image

C. Ray Brower - CalDRE #01969248

Are you looking for an agent who will listen to everything you have to say, from your very first contact with him, all the way until the day he hands over the keys to your new home or closes the deal ....

Latest Blog Posts

5 Things You Should Know About The Mortgage Loan Process

Probably, one of the scariest things about buying your first home would have to be not understanding the whole process of obtaining a mortgage loan. So, what are the 5 things you should know about

Read More

Coming Soon 8811 Cottonwood Lane The 8 Things You Should Know About This Stockton Home

The seller says these are 8 things you should know about 8811 Cottonwood Lane, Stockton, CA 95210, our coming soon listing.What was your favorite feature of the house? The family room and the

Read More

What Is Renting Your Stockton Home Costing You

Are you renting your Stockton home? Have you been wondering what the actual cost of renting is? Do you believe that renting your Stockton home is more cost-effective than buying?We have

Read More

Should You WaitTo Buy Your Stockton Home Based On A Higher Interest Rate

Have been thinking you are going to wait to buy a Stockton home because of the interest rate have gone up? Have you said I'm going to wait until prices and interest rates go down before I buy my

Read More