I hear frequently from potential buyers in today’s market – and many are fearful of taking that leap into home ownership. Some are intimidated by the process, expecting a never-ending slog through their financial history.

Actually, the home buying experience can vary depending on your preparation, and the team you have at your side. The lender you choose, the real estate professional involved, and other factors can make a big difference when buying a home.

You may even know someone who’s recently been through a less-than-pleasurable home buying experience, you may be apprehensive about the process.

I’ve got some good news….buying a home is easier than you probably think.

The key is understanding what it takes to get approved for a mortgage, and being properly prepared. These things will make all the difference in the story you will soon be telling your friends.

First Things First: Get Pre-Approved

One of the best ways to ensure a smooth home buying process is what you do before you begin your home search.

First, check you credit report and know your credit scores.

Taking this step early in the process will tell you which loans may work better for you. Checking your credit will also give you time to clear up any possible errors or issues you find.

Mortgage pre-approval, without the pressure of a closing date, is easier than trying to engineer a full approval from the ground up. And having a pre-approved mortgage means you can close faster when you’re ready to buy.

If you’re pre-approved you will have less to worry about when you begin your home search. You will know you’re a qualified buyer, and you offers will get more respect from sellers and their agents.

Please reach out to me to discuss the pre-approval process and how I can help!

Loan Approval Guidelines Have Loosened

The good news? Loans originated in May 2017 increased to more than 70 percent from the prior year. This is great news for home buyers, as it means more approvals for mortgage applicants.

A common myth is that most folks buying or refinancing a home have a near-perfect credit score. In reality, the average FICO score on all closed loans is 723, and for FHA mortgages, it’s just 684, Many home buyers are purchasing homes with considerable lower scores.

Mortgage Approval in Now Easier

Changes in the mortgage industry are making it easier for applicants to get approved and buy homes.

 

Recently, the Consumer Protection Financial Bureau (CFPB) determined that of the millions of consumers with medical collections on their credit reports aren’t as likely to default on future credit accounts as those with other types of collections. For this reason, many loan programs now treat medical debt differently.

Another major reason that home buyers put off buying a home is that they think they don’t have enough money needed for their down payment.

In fact, many programs require very little down – from zero to five percent.  Even better, down payment assistance programs can help with grants or loans, Many who qualify have no idea this kind of help exists.

Please reach out to me so I can help you become a home owner.