Even throughout the pandemic, the homes that are on the market are continuing to sell quickly. If you would like to join the many people who have purchased a home this year, the first big step is receiving pre-approval for your mortgage. Getting approved may seem a little daunting at first, and that’s why we’ve decided to outline steps you can take to set yourself on the right trajectory toward pre-approval and the ensuing journey toward homeownership.
You should know where your credit stands before moving forward with seeking mortgage pre-approval. Aim to have a credit score of at least 620 to maximize your chances of being approved. Naturally, a credit score greater than 620 is only a bonus, as higher credit scores lead to more competitive interest rates.
In addition to making sure your credit score is high enough, you should also inspect your credit history to make sure it is accurate and in good standing. If you find any errors during this process, make sure you resolve these issues with your creditors before applying.
Contributing a down payment toward your home purchase will greatly help you in the future. If you are in the early stages of purchasing a home, or even thinking about purchasing a home, saving for a down payment should be among your top priorities. As you start to zero in on your preferred price range, make sure you have it in the back of your mind to set aside anywhere from 3% - 20% of that value.
Mortgage pre-approval requires a decent amount of paperwork. To save yourself the time and stress in the future, focus on having the following bits of personal information backed up and readily accessible along the way:
If you’ve followed the first three steps, chances are you are in decent standing for pre-approval. At this point, it’s time to select a lender. Once you have filled in your application and the lender has completed the underwriting, you will have a much clearer idea of loans you might be approved for, your interest rate and how much you can borrow.
Clearview Realty helps home buyers in Colorado, Florida and California understand the different types of mortgages that are available and provides loans to help people achieve the dream of homeownership. Since the specifics of which mortgage to choose is dependent on a variety of factors, we encourage you to call us for more information and find out which is right for you. Our number is (720) 217-5731, or you can send us a message.