“It’s all about relationships,” says our expert, Gabe Fortmann, Branch Manager of Academy Mortgage. “It’s a lifelong journey when you find someone that you trust. I work with multi-generations of clients to help them attain their dreams of homeownership because of the trust that has developed between us.” AcademyMortgage.com/GabeFortmann
First, a foundational step toward acquiring a mortgage is to get pre-approval from a lender. That allows you to shop for a home equipped with your parameters. It’s also important to speak with your lender about your debt-to-income ratio and the lifestyle changes you may need to make. You want to enjoy your life—not be house poor.
Get a local loan officer and rely on their expertise. Dealing directly with a person face-to-face is always best. The local lender will know the layout of the land and have an awareness of local programs and local taxes. They will also know other players in the field to assist you and will be with you throughout the process. It’s a shared sense of community.
There is the myth of needing to put down 20% of the total. That’s only necessary if you want to avoid paying Personal Mortgage Insurance (PMI.) There are alternative programs such as first-time homebuyers, low PMI, FHA, USDA, and more that will allow you to put less money down.
Understand the components of a credit score. Lenders rely on the credit that you have established to determine the risk they are willing to take. Late payments on your bills will affect your credit score. If your credit is less than desirable, you may not be able to borrow as much as you need. Still, Academy Mortgage will show you how to read your credit score and direct you where to go and who to see to begin to repair it.
