Discover Home Loans released an interesting survey, which revealed the truth on the actual preparedness of an average home buyer for a mortgage process. Based on the survey, majority of prospect buyers encounter uncertainties with the process of home financing. Despite the fact that 94% of home buyers are well-convinced that purchasing a home is a good investment for long term finances, most buyers are overwhelmed with the surmountable information related to mortgage processes.
To keep away the surprises, check out these 5 simple steps for home financing:
- Learn more about your credit score You would want any surprises.
- Gather all necessary documentations Prepare your income verification (W2 forms, tax returns, employment), and credit history and assets (like bank statements to verify your savings).
- Reach out to a Professional Find someone that you could trust to help you develop a plan and assist you identify the amount that you could actually afford in buying a home.
- Consult your Lender for income, expenses & financial goals Work closely with them in determining the most suitable type and amount of mortgage you can qualify for.
- Discuss with your Lender about applying for mortgage & getting pre-approved Secure a pre-approval letter to give you the estimate of what you can loan for, in an assumption that your financial capability remains unchanged, and also to show to sellers that you are a serious buyer.
Always do your research, and don’t be afraid to reach out for help. If you have any questions, just reach out and we’ll talk it over a cup of coffee.
Source: Keeping Current Matters