There are some steps to buying a house, and it might not be exactly what you would think. Here’s a few simple ways to set you up for success, before you even start flipping through listings.
Let’s get started:
- Keep your credit healthy. Nothing will set you up better to get a mortgage, so this should be the first step you take to buying a house, and it’s one we see too many people skip. You should be using 30% of your available credit or below. And remember, lenders are looking for you to be making consistent payments – no credit can actually hurt your chances at getting a mortgage, even if you are financially stable.
- Prequalified, to help you budget. A prequalification is an approximation of what you are eligible for in a loan, based on the information you provide a lender. This is a really simple and easy thing to do that will help you, as a homebuyer, know how much your budget should be. It also allows sellers to know that you’re serious and have actually looked into your ability to afford their home. It’s quick and easy, and you can get it from any lender without committing to use them, so you don’t have to hesitate.
- Get a Preapproval. Preapproval takes it a step further than a prequalification. It’s a real-deal statement from a lender saying that you qualify for a specific mortgage after legitimate review of all your financial information, including credit report, pay stubs, bank statement, etc. A preapproval letter is basically the whole mortgage loan, without the property information put in, meaning the only thing it relies on is the appraisal of the home. If you’re placing a bid on a home, a preapproval can put you a leg-up on your competition, because a preapproval brings you as close to being a cash buyer as possible. That can be a huge advantage if the seller has multiple offers.
No matter where you are in the process, these steps can help! And if you’re looking for a mortgage company and have questions, feel free to give us a call! We’re a Christian lender with faith and family values, and we always try to offer the best to you and your family, even where you’ve heard no before.
The Christian Mortgage Mom