Top 3 Things to Know Before Applying for Your Mortgage

It is important to be prepared once you begin the home buying process. Having all your financial documents organized and making sure you have enough money saved is vital in becoming a homeowner.

So now that you have decided to take the plunge into homeownership, your local Newnan Mortgage Lender has listed the top three things you need to know before applying for a mortgage.


Tip #1: Credit Score

Your credit score makes a huge impact on the type of Newnan mortgage you will be able to qualify for. If you have a poor credit score, don’t let that deter you from applying for a mortgage. There are government-backed loans, such as an FHA loan, that has a minimum credit score as low as 580.

It is also important to know that the higher your score is, the better the rate you could receive on your mortgage. So, try to raise your credit score as much as possible before beginning the application process.


Tip #2: Debt-To-Income Ratio

Your Newnan mortgage lender will also want to know what your debt-to-income ratio is. This is the difference between your gross income and the amount of debt you have. Knowing this amount will tell the lender how risky of a borrower you are and how likely you are to pay back your loan.


Tip #3: Down Payment

Another important thing you need to know before applying for a mortgage is what is expected of you when you find the home of your dreams. This includes having to make a down payment on your house. If you pay less than 20% of your down payment, your lender will require you to pay for private mortgage insurance. This fee is to ensure the lender is covered if you default on your mortgage.

Try to save as much as you can for your down payment to prevent additional fees. Also, the more you pay towards this payment, the better rates you might receive on your Newnan mortgage.


Contact Us

If you would like to receive more information on things to know before you apply for a mortgage, please contact Jeff Wilmoth with Homestar Financial at 404-597-5662

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NMLS#206798, Georgia Residential Mortgage Licensee #26534, 45 Newnan Station Drive, Suite B, Newnan, GA 30265, Homestar Financial Corporation Branch NMLS #1074746, Georgia Residential Mortgage Licensee #65965

Copyright © 2020. Homestar Financial Corporation NMLS #70864 Georgia Residential Mortgage Licensee #17368. This is not an offer to enter into an agreement or a commitment to lend. Not all customers will qualify. All terms, information, conditions, rates, and programs are subject to change without prior notice. All products are subject to credit and property approval. Not all loan products are available in all states. Certain other restrictions may apply. ?For important licensing information, refer to Homestar Financial Corporation is an equal housing lender and is not affiliated with any government entity.

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