If you’re considering purchasing a home in Des Moines, there are a few things that you should know before applying for a mortgage. The preapproval process can be stressful, but by knowing what to expect and being prepared, you can get your preapproval and start looking at houses in no time. In today’s post from the Rob Ellerman Team in Des Moines, we’ll discuss a few things you should know about before applying for a mortgage.
Your Credit Score Plays a Big Role
One of the first things that your lender will look at is your credit score. Your credit score is a number that represents your creditworthiness, and the higher your score, the more likely you are to be approved for a loan. If you have a low credit score, you may still be able to get a mortgage, but you may have to pay a higher interest rate or make a larger down payment.
There Are Different Types of Mortgages
Not all mortgages are created equal, and there are a variety of different types of mortgages that you can choose from. Fixed-rate mortgages have an interest rate that stays the same for the life of the loan, while adjustable-rate mortgages have an interest rate that can change over time. There are also government-backed loans like FHA loans and VA loans.
You’ll Need Documentation of Your Income and Assets
When applying for a mortgage, you’ll need to provide documentation of your income and assets. This can include tax returns, pay stubs, bank statements, and investment account statements. Your lender will use this information to verify your income and determine how much they’re willing to lend you.
You May Have to Pay for Private Mortgage Insurance
If you don’t have 20 percent for a down payment, you’ll likely have to pay private mortgage insurance (PMI). PMI is insurance that protects the lender in case you default on your loan. It’s typically required if you have less than 20 percent for a down payment, and this will be a monthly expense in addition to your mortgage payment.
Start Looking at Houses for Sale in Des Moines Today
Now that you know a few things to expect when applying for a mortgage, you can start the process with confidence. If you have any questions or need help getting preapproved, our team at the Rob Ellerman Team is here to help. Contact us today to get started!
