Buying a home and taking on a mortgage is a huge decision. A home is one of the biggest purchases you’ll ever make, if not the biggest, so it’s important that you do your research and understand what it takes to qualify for the best mortgage terms. Here are a few valuable tips and things you need to know about getting a mortgage.
Your credit score is one of the primary factors that lenders will take into consideration when you apply for a home loan. A low score may leave you unable to secure financing, keeping you from purchasing your dream home. Your credit can also affect the terms of your mortgage, and a higher score may qualify you for better a better interest rate.
There are many types of home loans for you can choose from, and the best option will depend on your unique financial situation (every borrower is different).
Lenders will require a set of documents to process your mortgage application.
ESTIMATE CLOSING COSTS
Be aware of the costs associated with closing on a home. Some closing costs are paid to your lender, such as discount points, loan origination, and mortgage application fees. Other closing costs are paid to third parties, such as inspection fee, title search, title insurance, etc.
Getting pre-qualified by a mortgage lender gives you an idea of how much you can borrow. Before you meet with a real estate agent and begin viewing homes, it is important to secure loan pre-qualification. At Mr. Cooper, it’s as easy as a quick phone call.