Your credit score determines what type of loan you qualify for. The higher your credit score, the lower the interest rate on your mortgage. You can expect a good mortgage rate on a conventional loan with a credit score above 720. However, those who pursue an FHA loan can usually secure a loan if their credit is 580 or over. There is usually something for everyone!
A mortgage lender will pull your credit score for you, which they need to do in order to draft your pre-approval letter (more on that later). I am happy to recommend a couple of lenders if needed. I suggest you meet with at least two lenders so you can compare their terms and rates.
See the next section on PRE-APPROVAL LETTERS.
A lender will write you a pre-approval letter based on the credit information they pull (see Step 1). The letter will state the amount they are willing to lend you. Sometimes your pre-approved amount will be higher than what your financially comfortable with. Find a payment amount that fits your budget.
Please note that you are not obligated to get a loan from the lender who you get a mortgage pre-approval letter from. When it’s time to officially apply for a mortgage, I recommend getting loan estimates from a few lenders to compare their interest rates and fees.
Once you have the pre-approval letter, you are ready to look at homes.
Meet with a Realtor and discuss your home search. Not all Realtors area created equal. Find someone who fits your personality, schedule, and energy. Some Realtors don't work weekends, or only work till 5pm. Maybe you need a Realtor who really is up to date on new listings, knows how to win multiple offers, or is very patient.