The process of purchasing a home can be a daunting experience for first-time home buyers. Many think it’s a dizzying maze of paperwork, credit checks and gathering documentation. But if you prepare correctly, securing a mortgage really isn’t as complicated as it seems. The rules of today of aren’t the same as five years ago.

Before you start house hunting, it’s a good idea to gather and organize all the required documents. This will make the process much easier to find the right home for you.  It’s important to have patience. Because of the recent housing burst, it might take a longer period of time to secure a mortgage loan. Today’s lending standards are stricter than the days of 2005 and 2006. But don’t be intimidated. A responsible mortgage lender will walk you through the process and help you reach your dream.

The key is preparation. You should start preparing at least six months to a year before you start house shopping. This will give you the proper amount of time to make sure your finances are in proper shape. Take some time to build up your savings for the correct down payment. Also use this time to make sure you resolve any debt obligations. Once your finances are in properly organized, you lower the risk of any complications that could result in losing the house before a completed sale.

Try to get preapproved for a mortgage. A lender can help you get an estimate on how much you can afford. But make sure you work towards getting preapproved as opposed to getting prequalified. There’s a big a difference.  A prequalification is simply a conversation centered on your financial situation. But when a prospective homebuyer receives a preapproval letter, they’ll have proper documentation proving the lender has evaluated the client’s financial status, credit history and determined an acceptable loan. Once you’re preapproved, you’re able to gain leverage during negotiations.

It’s extremely important to be organized. Gather all your vital documents. You’re going to need W2s, income tax returns and bank statements. Bringing the right documents to your lender for your first meeting will speed up the process considerably. Most delays are due to clients trying to find needed paperwork.

Lastly, make preparations for closing costs of the mortgage that aren’t a part of the down payment. The costs are different depending on the state. But they’re an inevitable part of processing a loan. Usually these closing costs are 3 to 4 percent of the purchase price.

Preparation and patience will always serve you well when trying to secure a mortgage. The experienced and friendly staff at Ace Mortgage Loan Corporation can help first time or experienced home buyers navigate through the mortgage market.  Located in Coral Springs, their professional brokers can help work with you to secure the mortgage loan for your American Dream.

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