Mortgage Process Keeping You from Homeownership?

In Northern VA a considerable number of potential buyers shy away from jumping into the real estate market. Is the uncertainty of the home buying process and/or the mortgage process keeping you from homeownership? Purchasing a home can be intimidating to most, particularly first time home buyers, but with the right experienced professional, the process can actually be enjoyable.

For many, the mortgage loan process can be concerning, but it doesn’t have to be!

In order to qualify in today’s Northern VA market, you’ll need to have saved for a down payment (73% of all buyers made a down payment of less than 20%, with many buyers putting down 3% or less), a stable income and good credit history.

Throughout the entire home buying process, you will interact with many different professionals, all of whom perform necessary roles. These professionals are also valuable resources for you. As the REALTOR for my clients, I “quarterback” all the professionals in the process to get my clients to the dream of homeownership.

Once you’re ready to apply, here are 5 easy steps that Freddie Mac suggests you follow:

1. Find out your current credit history & score – even if you don’t have perfect credit, you may already qualify for a loan. The average FICO® Score of all closed loans in September was 724, according to Ellie Mae.

2. Start gathering all your documentation – income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).

3. Contact a professional– your real estate agent will be able to recommend a loan officer that can help you develop a spending plan, as well as determine how much home you can afford.

4. Consult with your lender – he or she will review your income, expenses, and financial goals to determine the type and amount of mortgage you qualify for.

5. Talk to your lender about pre-approval – a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change), and demonstrates to home sellers that you are serious about buying!

Bottom Line

Hire an experienced Northern VA real estate agent, research lenders, and stick to your budget. Be sure that you are ready to take on the financial responsibilities of becoming a homeowner. Give me a call and I can guide to determing your best option in Alexandria, Arlington, Ashburn, Burke, Centreville, Chantilly, Dunn Loring, City of Fairfax, Falls Church, Great Falls, Herndon, McLean, Oakton, Reston, Sterling, Tysons Corner, Vienna, or anywhere in Northern VA.

Article originally posted on my KCM blog, here.