blog-mortgageEveryone knows the home-buying process involves getting financing, or, more specifically, getting approved for a mortgage.

However, this step ends up last on many buyers’ lists. In fact, a 2013 study by the U.S. Consumer Financial Protection Bureau shows that half of potential homeowners didn’t shop around.

As a goal, you must first get your credit in order and then look to save with your monthly premium. In doing so, figure out how much you can afford and look around for the right combination of fees and rates. Think about these tips:

Examine Programs

There’s not just one mortgage out there. Most buyers get approved for conventional loans, but others find that FHA, USDA, and VA programs – with low to no down payment – make a better fit

In the process, look at the down payment, monthly premium, fees, and insurance you’ll need to spend per month, as well as the current rates.

Examine Lenders

Whether you plan to go straight to a lender, which might have a limited amount of programs, a bank, or a broker with more access to a greater number of loans, find one with reasonable fees and rates. Ask around for referrals and recommendations.

Have Your Financial Situation Ready

Be ready to give any lender a full picture of your financial situation to get an accurate quote. Make sure to mention whether you’re self employed, have changed careers, or had a foreclosure in the past.

Then, compile all standard documents a lender could need: pay stubs; bank statements from checking, savings, and investments; W-2s and tax returns; and how much you pay in rent now and any mortgage or property tax statements.

After, make sure you can discuss your goals for the property: Do you plan to sell or refinance in the not-so-distant future? This could help with getting a lower rate.

All of this becomes necessary for securing a real preapproval, in which your documentation gets submitted to a lender’s underwriting system. This figure tends to be more accurate and can help you close faster later on.

All of this information, too, helps with looking at homes. So, if you’re considering Central Connecticut, make sure to explore your options with By Carrier. Contact us to learn about our communities.

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