• Mark Pattison

The Mortgage Process: Have No Fear

Many buyers hide away from the real estate market out of fear of the buying process. Mortgage qualification is a common fear.

Don't fear the mortgage process

In order to qualify in the market, you'll need a down payment, a stable income, and a strong credit history. The average down payment on all loans was 5%, however many buyers put down 3% or less.

Throughout the entire home buying process, you will interact with a number of different professionals. Each professional are valuable resources and will play necessary roles in the process.

When you are ready to apply, follow these 5 steps:

1) Get your credit score and history

You don't need perfect credit to qualify for a loan. Last month, the average FICO score on closed loans was 731, only considered "good".

2) Gather important documentation

Find and put together all of your documentation including income verification, credit history, and assets. You'll need W-2 forms or tax returns and bank statements.

3) Contact a loan officer

Your PorchLight agent will recommend a loan officer who will help you develop a spending plan and help you decide what homes you are able to afford.

4) Meet with a lender

Your lender will review your income, expenses, and financial goals in order to determine the amount and type of mortgage you qualify for.

5) Talk to your lender about pre-approval

A pre-approval letter gives an estimate of what you would be able to borrow to buy a home. A pre-approval letter shows the home sellers that you are serious about buying.

Do your research, talk to professionals, and make sure you are prepared to take care of the responsibilities of becoming a homeowner!

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PorchLight Realty Team

Cal BRE #01953760

4612 Park Blvd

San Diego, CA 92116

Broker: eXp Realty

Cal BRE #01878277

2603 Camino Ramon, Suite 200

San Ramon, CA 94583

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