Getting a mortgage doesn’t have to be a struggle. You might be dreading going through the process, but there are some ways that you can make sure that your mortgage process is not stressful at all. Planning in advance and using the right skillset can make all the difference in your mortgage experience from state to finish. When you have the right tools on hand, the mortgage planning and completion process can be smooth and straightforward.
Getting a mortgage requires some planning in advance and some saved money that you have built up, as well as the right search tools to help connect you with the mortgage for your needs. When you work with the right mortgage finding tool, your mortgage search can be easy, and you can get the process of buying your dream home underway without delay.
If you are ready to learn some more about the top tips to help you to get the mortgage that you have been looking for, you need to keep reading.
Tips to Get a Mortgage
Get Your Credit in Order
The first thing that you need to do when you are getting ready to get a home is work on getting your credit in order. Your credit report is how lenders determine your rate for your loan and also whether or not you can secure a loan at all. You will need to make sure that you work on improving your credit history and credit score before you apply for your loan. The better your credit, the more likely you will be to get a favorable mortgage that you can afford to pay for. Credit is only one of the factors that are looked at when people seek loans for a home, but it is one of the most important factors.
You will need to have money saved up for your down payment, or you will be unlikely to get a mortgage. The gold standard for a down payment for large home loans is around 20%. However, if you are trying to secure a smaller mortgage, you might only need about 10% or less down. There are some buyers who are also eligible for home loans without any money down. No matter what your down payment ends up being, you need to have some cash money in savings to be sure that you can afford unexpected costs related to the home-buying process. Having cash on hand can make the difference between being approved for a loan and not getting one, so this will need to be an area of focus for you as you prepare to secure a mortgage.
The pre-approval process is one of the best ways to be certain that you are shopping for homes that you can afford. This is one of the things that not everyone knows they can do to help prepare for the mortgage and home-buying process, and which can serve as a very important way to prepare better to look for your dream home. Pre-approvals also help the overall buying experience progress more smoothly and rapidly once you have found a home that you are in love with.
Shopping in the right price range is also key to finding a house that you can secure a mortgage for with ease, and pre-approvals will tell you what your budget should be in straightforward terms. You will also know what contingencies are going to be put in place for your purchase so that you can start working on these items while you are shopping around for your new home.
Cut Down on Debts
Even if your credit score is really good, you will be wise to cut down on your debt load before you apply for a mortgage. Your debt-to-income ratio is a big part of what guides lenders to decide to work with you or not, and you might even be required as a stipulation of your mortgage to pay off other outstanding debts. Being ahead of the curve and cutting down on the number of debts that you have in your name can make a big difference in your ability to get a mortgage.
Prepare Your Existing Home for Sale
If you have not already sold the home that you currently own, you will want to be sure that it is ready to be listed for sale when you have gotten everything in order for the home-buying process. Delays related to preparing your existing house for the sales process can make you miss out on the home of your dreams and can complicate the paperwork process related to your new mortgage. Many homes are purchased and sold with a contingency on the existing home that the buyer owns. When your home is ready to sell at the time that you seek a mortgage for your new home, you will be less likely to have to juggle finances carefully during the sales and purchase processes.
Work With the Right Lender and Mortgage Tools
When you are ready to start applying for loans, you need to use the right tools to help you get connected with the lender that will offer you the most personalized mortgage options. There are many sites that offer these services, but they are not all created equal. Perch will help you to both buy a new home and sell your existing home with ease. From straightforward and simple mortgages to maximum savings, and customized mortgage suggestions, you can count on Perch to help you to get the right loan for your needs and to pay off your existing home loan when your house sells.
We can also help you to learn more about the mortgage process and guide your decision-making so that you are sure that you are getting the right loan for your unique situation. Everyone prepares for the mortgage and home-buying process from a different starting point, and Perch can help you to find out everything that you need to know to be ready to secure a mortgage when you find the home of your dreams.