Today on Dear Claire, we talk about the mortgage process
People are always afraid of getting a mortgage and they’re wondering what’s it going be like? Am I going be ashamed because my credit is not as good as I’d hoped? I’m worried about stuff that might be on my credit, and what’s the number going to be?
A few things you should know. It’s really easy and takes around 45 days. Fist, the lender will pull your credit, at a cost of around $25. They’ll then ask for your most recent pay stub and the prior year’s tax returns. That’s pretty much all of it at the beginning of the process. They may ask you for more stuff as the process goes on, but that’s all you’ll need initially. The lender will usually issue a pre approval letter, and typically it’s going to be more than you want to spend. However, this considered the amount they are willing to lend you.
As part of our buying process when working with our clients, we will provide you what’s called a worksheet, which is a tool to help you calculate your approximately monthly payment of a house that you’re interested in. Property taxes can vary wildly which can affect your monthly payment significantly as well. Imagine if one house in your price range yearly property taxes of $5,000 and another one is only $3,000 a year. On a monthly basis that’s approximately a $100 difference on your payment. So that’s something that we like to get when you’re really getting interested in a property because that will make a huge difference on your payment.
Please feel free to reach out to us and I look forward to talking to y’all soon. Hope you’re having a great day. Take care.