You can dream about homeownership and even search for new listings online, only to find yourself disappointed when you are unable to qualify for the financing that is needed. Most home buyers don’t have enough cash to pay for the home, which means they need to qualify for financing through a bank or financial institution. Mortgage approval is an important step in this process.
In fact, applying for a mortgage is one of the first things you need to do when preparing for homeownership. Before you start touring properties and choosing your dream home, it is important that you talk to a lender to know what your options are for financing. You can get pre-approval for the money that will be needed, then provide the documentation to home sellers showing that you will be able to pay for the purchase.
4 Tips for Getting a Mortgage
Unfortunately, some people find that they can’t qualify for the money that is needed. If you are having a hard time getting a mortgage, then consider these four tips:
- Manage Your Credit: Your credit score and credit history will show the lender whether you are a reliable borrower. It is important you take steps to boost your credit score as much as possible. Then, be careful to maintain credit stability throughout the homebuying process.
- Home Appraisal: Most lenders won’t approve the mortgage without an official appraisal on the property. The home is going to be collateral for the loan, so the lender wants to be sure there is enough value to cover the amount of the loan. You need to be prepared to pay for this appraisal process to receive mortgage approval.
- Underwriting Process: The lender won’t issue the final approval on the loan until the underwriting process is complete. You might need to provide additional paperwork, income verification, tax filings, and other details. So, maintain close communication with your mortgage provider to avoid hang-ups during this stage of mortgage approval.
- Final Forms: When it is finally time to close on the home, you will need to sign a stack of paperwork for the mortgage as well as the ownership transfer of the property. Luckily, you can lean on the advice and expertise offered by your real estate agent and lender to ensure that nothing slips through the cracks when you are finalizing the paperwork.
Hiring a good real estate team is the most critical thing you can do to ensure success with your home purchase. Not only do you need to work with an experienced real estate agent, but you also need to work with a lender you can trust. DUFFY Realty is just a phone call away when you need real estate advice. Contact us to learn about the services that are offered for Atlanta real estate: (678) 318-1700