Here are the key details extracted from the infographic "What You Need to Know About The Mortgage Process":
What You'll Need to Qualify in Today’s Market:
Downpayment:
Typically 5-20% of the purchase price.
40% of buyers put down less than 10%.
Many put down as little as 3%.
Income Verification, Credit History, and Asset Documentation:
Lenders require proof of income, creditworthiness, and savings.
Impartial Third-Party Appraisal:
The lender requires an appraisal to verify the value of the house.
Stable Income:
Essential to qualify for a mortgage.
Good Credit History:
A strong credit score increases loan approval chances.
Steps to Take:
Find out your current credit history and score.
Avoid surprises before applying for a mortgage.
Start gathering all of your documentation.
Includes income verification (W-2s, tax returns, employment proof), credit history, and assets (bank statements, savings).
Contact a professional.
Develop a spending plan and assess affordability.
Consult with your lender.
Review income, expenses, and financial goals to determine loan eligibility.
Talk to your lender about applying for a mortgage and getting a pre-approval letter.
Pre-approval estimates mortgage eligibility and signals to home sellers that you're serious.
Bottom Line:
Do your research.
Consult professionals.
Be financially prepared for homeownership.
Source: Freddie Mac
