Buying your very first home is one of the absolute most exciting and daunting things you’ll ever do in your life. It’s easily the biggest purchase you’ll ever make, which means there is a whole lot to consider and be aware of. Before you start searching for that perfect home, it’s a good idea to brush up on the mortgage process so you know what’s involved, what is expected of you, and the steps you’ll be taking. This will help to make you a much more informed homeowner.
Take a Look at Your Credit Report and Score
You probably haven’t been too concerned about your credit report and score in the past, but when it comes to getting a mortgage, this information is extremely important. Before you start shopping around, it’s a good idea to request a copy of your credit report so you can see exactly what lenders will have access to.
This also gives you an opportunity to improve your score if it’s low. A low credit score will affect how much of a mortgage you are approved for in a pretty significant way. One way you can instantly improve your credit score is close off any credit cards and store cards you are no longer using.
Now Isn’t the Time to Change Jobs
If you’ve been thinking about changing jobs, this is something you’ll definitely want to put off for now. Lenders like to see that you have been with the same employer for at least a few years. It makes you look reliable, which means they know you’ll be able to cover the monthly mortgage payment. Once you have a mortgage and have settled into a new home, you can start your job search.
Save as Much as Possible
Chances are you’ve probably been working at saving a down payment, which is very smart. Ideally, you want to save 20% as a down payment, but it is possible to still purchase a home with a down payment of just 3.5%. Just remember, the more you save, the less you will actually need to borrow.
The next step is to get pre-approved for a mortgage. The Chase mortgage pre-approval process is an excellent way to go as it’s part of JP Mortgage Chase Bank, NA. Chase Bank one of the largest financial institutions in the country, so they are a reliable mortgage lender. A mortgage advisor will contact you and then discuss the various options available and figure out how much you’d be approved to spend on a mortgage. The reason this pre-approval is so important is that it will set your budget. You know you won’t be able to spend more than the pre-approval amount, so it will narrow down the options.
You Are Ready to Shop
Now that you’ve followed all these steps and familiarized yourself with the mortgage process, there’s nothing left to do other than shop for that perfect dream home.