Analysts, along with everyone, are wondering what the next few months will hold as the pandemic rages on, causing inflation to stall and mortgage rates to rise, even with fewer jobless claims.
Summary: Before you apply for a mortgage in WA, OR, CO, or ID, you’ll need to understand what it takes to get approved and qualify, including a down payment, stable income, good credit, and income verification. This infographic will provide with important information you need to know about the mortgage process.
The mortgage application process may seem like a daunting task, but it doesn’t have to be. As long as you go into the process knowing everything you need to know, there’s little reason why you shouldn’t find success.
What You Need to Qualify For a Mortgage in Today’s Market
Down payment. You won’t have to come up with the entire purchase mount in full when you buy a house, but you will need some for of down payment (unless you qualify for a VA loan). The down payment amount required will depend on the type of home loan you take out and your financial health. Generally speaking, you can expect to pay anywhere from 3% to 20% of the purchase price of the home or more for a down payment.
Income verification, credit history, and asset documentation. Your lender will want to know how much you earn, what your credit score is, and what assets you currently have before determining whether or not you are eligible for a mortgage. Find out what your current credit score is so you know how strong your profile is before going into the application process. Start collecting all of your documentation, including your pay stubs, tax forms, and letter of employment.
Third-party appraisal. The lender will also want to know what the value of the home is that you intend to buy, and an appraisal will be ordered to find this out. This will provide the lender with information that will help determine an appropriate loan amount to approve you for.
Stable income. Your income will need to be adequate enough to cover your mortgage payments, plus all your other current debt obligations.
Good credit history. A high credit score will mean you’d be less of a risk for the lender because you’ll be less likely to default on your home loan.
Steps to Take
To make sure you go through the mortgage process in full and increase your chances of approval, take the following steps:
- Find out what your credit score is
- Start gathering all your documentation
- Contact a professional
- Consult with your lender to review your income, expenses, and financial goals
- Talk to your lender about applying for a mortgage and getting a pre-approval letter
Get in touch with a financial professional to help you understand how much you can afford, and consult with your lender to find out what type of mortgage might be best suited for you. Finally, talk to your mortgage lender about getting pre-approved for a mortgage and applying for a specific home loan. Get in touch with Sammamish Mortgage to learn more!
Need a Mortgage?
Sammamish Mortgage is a local lending firm serving the broader Pacific Northwest region including Washington state, Idaho, Colorado, and Oregon. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria. Please contact us if you have any questions or are ready to apply for a home loan.