Buying a home is one of the biggest purchase you’ll ever make, and if you’re like the majority of other homebuyers, you’ll need to finance that purchase with a mortgage. Learning more about how to get a mortgage can help prepare you for the process and plan accordingly when it comes to buying a home.
How to get pre-approved for a mortgage
Getting pre-approved for a mortgage is generally the first step in the process, because this lets you know where you stand and the amount you’ll qualify for. To get pre-approved for a mortgage, you’ll have your credit checked, and you’ll also need to provide proof of income and assets. A pre-approval from Filo Mortgage will give you confidence during the buying process as it will let you know what you can afford and how money you can borrow. It will also make the process faster once you find a home as we will already have the main documents on hand. We tell home buyers to limit taking out any new debts to insure your credit score remains as high as possible during the process, and to insure that your debt to income ratio doesn’t change.
Once you receive a pre-approval, it is valid for up to 120 days. Having a pre-approval will also show sellers that you’re a serious buyer, and it can be particularly helpful during the house hunting process especially in today’s market.
Can I get a mortgage?
Qualifying for a mortgage is based on several factors, including how much you’re looking to borrow, your credit history, the size of your down payment, debt-to-income ratio, and more. Certain types of mortgages may be easier to qualify than others. The higher your credit score, generally the lower the interest rate on your loan for the same term. You can improve your credit score quickly by disputing any credit report errors, paying down debt, and refraining from applying for any other loans or credit cards.
How to get a mortgage with poor credit
Having good credit increases your chances at qualifying for a conventional mortgage with a favorable interest rate, but if your credit score is low, you may still have other options. VA loans, for example, don’t always take credit score into consideration. However, they are only eligible to veterans, active members of the military, and surviving spouses. FHA loans are another option for borrowers with poor credit and tend to be more flexible with their approval criteria. If you’d like to learn more about your available financing options with a lower credit score, contact Filo Mortgage and we’ll be happy to help.