Guide on getting a mortgage in 2025, involving credit score improvement, loan programs, and lender selection.
From Yahoo Finance: 2024-05-07 13:13:00
Planning to buy a house and need a mortgage? Improve your credit score, choose the right loan program, and find the best lender. Get prequalified, find the right house, and apply for a loan. Gather financial documents and work with your banker, agent, and loan officer for guidance.
Your credit score influences your mortgage terms and interest rate. Meet minimum credit score requirements for different loan programs. Check your credit report from all three bureaus, dispute errors, and pay down debts to improve your score and chances of approval.
Consider fixed-rate vs. adjustable-rate mortgages, loan terms, and possible loan programs like FHA, USDA, VA, and Jumbo loans. Choose the best mortgage lender by comparing loan programs, requirements, and costs. Shop around for the most favorable loan terms to find the best deal.
Get prequalified to understand your home-buying power and get preapproved for a clearer idea of your loan limits and interest rate. Work with a real estate agent when making an offer, and avoid overspending to prevent becoming “house poor.” Choose the best mortgage lender by getting multiple loan offers.
Gather necessary documents like identification, employment history, financial statements, tax returns, and legal documents. Agree to a credit check to assess your debt-to-income ratio. Expect the underwriting process to take about four to six weeks, and avoid changes to your credit to prevent delays or cancellations.
Starting the mortgage process involves using a mortgage calculator to determine affordability. Lenders consider your debt-to-income ratio, not just your income, when deciding on mortgage approval. Ensure your DTI ratio is within acceptable limits to qualify for a mortgage loan.
Read more at Yahoo Finance: How to get a mortgage in 2025