Getting a mortgage loan is the first step for Waltham first-time home buyers. Obtaining a mortgage can be an intimidating process. However, with a little knowledge about the process, you’ll know exactly what to expect and how to go about it. With that in mind, a Waltham Real Estate Agent has answered 6 of the most commonly asked questions about mortgage approval!
1. Do I need great credit to get a mortgage?
In order to get a mortgage loan, you don’t necessarily need amazing credit, however, it does help. It’s possible to get a conventional mortgage loan for your Waltham Real Estate with a credit score as low as 620. There are also some mortgage options if your credit score is even lower than that. However, the one thing to keep in mind is that the lower your credit score, the higher your interest rate will be.
2. What documentation do I need to get a mortgage?
The documentation that you’ll need to obtain a mortgage will vary from buyer to buyer. However, for the most part the required documentation will be fairly similar for most people. The main documentation that is required for a mortgage loan is a social security card, a month of pay stubs, and 2 years of w-2 statements.
Other documents that may be requested by a mortgage lender includes:
- Bank statements
- Asset statements
- Driver's license
3. What is the difference between a pre-qualification & a pre-approval?
A mistake that home buyers often make is not getting pre-approved. Many home buyers think that pre-qualified is the same as pre-approved, however, that is definitely not the case.
A pre-qualified mortgage is essentially an estimation of how much the Waltham home buyer may be able to borrow. It is not yet approved by the lender. A pre-approved mortgage is essentially a written commitment for a buyer from the lender, that is indeed approved.
A pre-approval is what every Waltham home buyer should have before looking at homes. It’s important to have a pre-approved mortgage loan as it can help buyers beat out the competition and give peace of mind to the seller.
4. What type of mortgage is best for me?
One of the most frequently asked questions Waltham Realtors get regarding mortgages is what type of mortgage is best. There are many different types of mortgages available, so it’s important to know which type is best for you. 4 of the most popular mortgages are:
- FHA Mortgages
- Conventional Mortgages
- VA Mortgages
- USDA Mortgage
When working with your Waltham Real Estate Agent, ask them which type might be best for you. Waltham Realtors will be able to easily help you with this decision and point you towards the mortgage path to success!
5. How long does it take to get a mortgage?
The amount of time it takes for a mortgage to get approved and financed will be different for each lender. When searching for mortgage lenders, it’s important to have a ballpark idea of how long each lender takes to close their loans. A top lender should be able to get the loan approved and financed within 30-45 days.
However, it’s important to understand that certain factors can delay the approval process. During the process, make sure to keep in touch often with your lender and make sure you get requested documents to them as quickly as possible. If the buyer is not on top of things, that could surely delay the process.
6. Should I get a 15-year or 30-year loan?
The answer to this question, it depends on how much you’re willing to stretch your budget. If you can afford a higher monthly payment, a 15-year mortgage will usually come with a better interest rate. With a 15-year mortgage, you will pay off your home quicker and also save a ton of money on interest. With a 30-year mortgage, your monthly costs will be less. This will allow you to maybe buy a nicer or bigger home.
Contact A Waltham Realtor
We know obtaining a mortgage can be a difficult process, which is why we’re here to help! Contact Waltham Real Estate Agent, Hans Brings today for all questions you might have about mortgage financing or Waltham Real Estate. Give Hans a call today at 617-968-0022