The most common thing potential home buyers do is save up money and wait a few years to talk to a mortgage lender, this might make sense in the buyer’s eyes but not to experienced lenders. Inexperienced homebuyers might see it as to why should I have my financial statements in order when I’m not even ready to buy just yet.
If one of your goals is to buy a home in the future you should go ahead and talk to a lender sooner rather than later. The mortgage lender has one goal and that goal is to get you “mortgage-ready.” What does this mean? It means that the mortgage-lender will walk you step-by-step like if you were applying for a loan that day by looking at your budget and finances.
So even if you aren’t going to buy a house that day you can get help on the road to owning a home. The Professionals at Property Records listed five reasons why you should start a homeowner’s relationship with your future mortgage lender.
#1 – Believe it or Not You Might Be Closer to Buying a Home than You Realize
One of the main reasons homebuyers may not want to take the first step is because they may think they are not ready, either because of their credit score or not having enough for a down payment. Whatever it might be you’ll be surprised how close some potential homebuyers are.
“Buying a home takes time and effort but it’s doable, people from all walks of life get approved for mortgage loans all the time. With so many programs for low-income families and first-time owners that the government offers it’s never been easier to be a homeowner,” says Kimberly Sao from Pine Lanes Homes in Los Angeles, CA.
#2 – Your Credit Doesn’t Have to Be Excellent to Buy a Home
Your credit score doesn’t need to be 800 or above to buy a house. The lowest credit score mortgage lenders usually accept is 620 and above. There are a few lenders that work with lower credit scores but a higher down payment is required. The Federal Housing Administration or FHA helps new home buyers with a credit score as low as 580. Other options are available and vary by state.
“It’s been a myth for many years that potential homeowners need excellent credit to own a home but this is false from the truth,” says Sao.
#3 – Lender Are Also Known for Helping Potential Homeowners With a Plan to Help Improve Their Credit
It is true that people with higher credit scores will qualify for better mortgage rates so if you have a poor credit score don’t give up just yet, there’s still hope.
Lenders are known for helping potential homebuyers with their credit score, it’s part of the job.
“I never had a homebuyer with excellent credit, or one that had everything in order, buying a home is a process, it’s not like buying a television at an electronics store. Buying a home takes time,” says, Sao.
#4 – A Lender Will Determine What the Best Path Will Be To Getting the Lowest Down Payment
The goal of a lender is to find the best and lowest down payment options for its clients. Each case is different, so people qualify for different first-time programs and loans. These are the steps most mortgage lender will take:
- The lender will do a “soft” credit score – A soft credit check will not hurt your credit score in any way. This will give the lender an idea where you stand.
- Your finances will be reviewed – Lenders want to know how much money you’ve been bringing in over the years and if you have any assets.
“The smartest thing you can do is think of the future and sit down with a lender to view your options,” says, Sao.