Buying a home is a big decision. The whole process can be very intimidating for new homeowners who have never worked with a quick closing mortgage lender in Kansas City. Fortunately, there are several things that you can do before getting your first mortgage that will help the process go smoothly and benefit you down the road.
- Meet with a mortgage officer before you look at homes. Meeting with your low-interest mortgage lender in Kansas City before you start shopping will not only prepare you for what to look for in a home, it can also give you an idea of what kind of price range you can afford and let you know what your mortgage payments would be at a given price point.
- Develop good credit habits. It’s good advice for a lifetime, but it’s especially important to develop good credit habits in the months or years leading up to the purchase of your first home. Missing student loan payments or paying bills late can damage your credit score, which makes it harder and more expensive to get a mortgage.
- Pay off as much debt as you can. Mortgage lenders look at what’s called your “debt-to-income ratio” to help determine how much you can afford to borrow. So, the less debt you have when you come to the table, the better. If you can’t pay off your student loans, consider consolidating or refinancing them to get lower payments.
- Save some money for a down payment. While experts may disagree about how much money is needed for a down payment, 20% of the total price of the home is often considered a rule of thumb. However, with help from a quick closing mortgage lender in Kansas City, you can often buy a house with very little down. Still, the more you have for your down payment, the lower your mortgage in the long run!
- Don’t pull your credit more than you have to! There are several points in the mortgage lending process that may involve pulling your credit score. Ask questions at every stage, and try to keep the number of times your credit score is pulled to an absolute minimum—optimally, you would only pull it one time during the process. Multiple pulls can lower your credit score, which can negatively impact your ability to get an affordable mortgage. It’s also important to avoid obtaining new credit cards or taking on other new debt leading up to your mortgage for the same reason.
- Documents, documents, documents! To make your mortgage lending process go as quickly and smoothly as possible, be sure to bring all the documents that you might need to your first meeting with your low-interest mortgage lender in Kansas City. Documents that you may need include: IDs and social security numbers of anyone who will be listed on the mortgage, your most recent bank statements, W-2s and tax returns from the previous two years, and current proof of income.
Whether you’re ready to start shopping for your first home or your fifth, consider working with a leading quick closing mortgage lender in Kansas City and contact First Fidelis today!