If you’d like to buy a Lake Nacimiento home this year, you might need to apply for a mortgage loan. In today’s market, it’s smart to get preapproved for a mortgage before beginning your home search, as sellers will take your offers more seriously, and you’ll know exactly what your budget is.
However, applying for the mortgage loan is not the first step in the home-buying process. As your Lake Nacimiento real estate agent, I’m here to share some steps you should take BEFORE you apply for a loan:
1. Check your credit score and report. You may read in real estate headlines that mortgage rates are low right now, and they are, which is great news for buyers! But what they don’t explain is that the rate you receive will be heavily dependent on your credit score and credit history. The lower your score, the higher your rate. Therefore, it’s worth your time to check your credit score, and to pull your latest credit reports and check them for errors. Resolve to fix any errors you find, if it will make a difference. If your score is lower than you’d like it to be, spend some time paying off debt and paying bills on time.
2. Collect your paperwork. There is a lot of paperwork you’ll need to collect and organize before you apply for a mortgage loan, and especially before you close on a house. It’s wise to get as much together beforehand as possible, to make the process go faster and smoother. Some items you will need:
-Tax returns for past two years
-W-2s or 1099s for past two years
-Bank statements for past few months
-Copies of your driver’s license and social security card
-Contact info for your current employers, current landlord, etc.
-Pay stubs for past 30 days
This is not an extensive list, but it’s a start! Once you find these documents, make copies of them, and consider scanning them so you have electronic copies. This will especially come in handy if applying for mortgage loans online.
3. Take time to shop around. Once these steps are complete, buyers are often eager to accept the first mortgage loan they’re offered and get going on the home search. However, studies have shown that buyers who shop around and get multiple offers save a significant amount over the life of a loan. While the rates you’re offered might not seem that different, even a slight difference could save you thousands over the life of a 30-year loan. Plus, when you apply for numerous mortgage loans within a two-week period, they only count as a single credit inquiry, so they won’t each hurt your credit.
Once these steps are complete, and you accept a mortgage loan offer and get preapproved, you are ready to find the Lake Nacimiento home of your dreams! Our Oak Shores Realty team will be there every step of the way, until you hold the keys to your new home in your hand. Give us a call!
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Oak Shores Realty specializes in Oak Shores at Lake Nacimiento properties. Please contact us today to get more information on Lake Nacimiento lake homes. Oak Shores Realty can also provide you an insiders “Lake Nacimiento Buying Guide” with great information including maps and market information.