Take the Fear out of the Mortgage Process

A considerable number of potential Redding home buyers shy away from jumping into the real estate market due to their uncertainty about the buying process. A specific cause for concern tends to be mortgage qualification.

For many, the mortgage process can be scary, but it doesn’t have to be!

In order to qualify in today’s market, you’ll need to have saved for a down payment (the average down payment on all loans was 11% last month, with many buyers putting down 3% or less), a stable income and good credit history.

Throughout the entire home buying process, you will interact with many different professionals, all of which perform necessary roles. Choosing to utilize local professionals will be very valuable resources for you.

Once you’re ready to apply, here are 5 easy steps that we suggest to follow:

1. Find out your current credit history and score – even if you don’t have perfect credit, you may already qualify for a loan. The average FICO Score of all closed loans in September was 731, according to Ellie Mae.
2. Start gathering all of your documentation – income verification (such as W-2 forms or tax returns), credit history, and assets (such as bank statements to verify your savings).
3. Contact a local professional – we are able to recommend local loan officers that can help you develop a spending plan, as well as determine how much home you can afford.
4. Consult with a local lender – he or she will review your income, expenses, and financial goals in order to determine the type and amount of mortgage you qualify for.
5. Talk to your lender about pre-approval – a pre-approval letter provides an estimate of what you might be able to borrow (provided your financial status doesn’t change), and demonstrates to home sellers that you are serious about buying!

Bottom Line
Do your research, reach out to local professionals, stick to your budget, and be sure that you are ready to take on the financial responsibilities of becoming a homeowner in Shasta County. If you are ready to make that move, please don't hesitate to contact me at 530-222-3800, or email [email protected].