14 Nov Fear of Buying a Home. Tips to Reduce Your Fear.
A significant number of people have a fear of buying a home and taking the leap into homeownership. A specific cause for concern tends to be mortgage qualification. Finding the right agent and lender will reduce this fear.
For many, the mortgage process can be scary, but it doesn’t have to be! Note, the average down payment was recently 11%. With the majority of which only require a down payment as low as 3% or less. Talk to your lender about all the programs you qualify for.
Throughout the entire home buying process, there will be many interactions with different professionals. Find an agent that will help you deal with all these individuals. Everyone performs very active and necessary roles throughout the process. Keep in mind, these are players on your team and thus, are a great resource for you along the way.
Once you’re ready to apply. Here are 5 easy steps that Freddie Mac suggests to follow:
Gather what you know about current credit history & score. Even if you don’t have perfect credit, you would be surprised to learn that you may already qualify for a loan. This is something your lender will walk you through.
Start gathering all of your documentation. Start with income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
Contact a professional. Your realtor will help you with your fear of buying a home and be able to recommend a loan officer. At that point, the chosen loan officer will be more than willing to help you develop a plan, as well as determine how much mortgage you can afford.
Talk To Your Lender
Your lender will review your information: income, short- and long-term expenses, and they will also help you to evaluate and review your goals (financial). All with the same end goal, to determine the total amount of mortgage you qualify for. Talk about pre-approval – a pre-approval letter provides insight into what you may be able to borrow, provided your finances doesn’t change. This also shows the sellers that you are serious about buying their home. The takeaway from this, do your research, reach out to professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner.