How To Take The Overwhelm Out of Selecting a Mortgage

Selecting a stress-free mortgage loan process is only one component of purchasing a home, but it can be the most overwhelming part of the process. Wading through countless Google searches to find the best home loan for you takes precious time away from the actual hunt for your perfect home. 

Additionally, figuring out your budget and setting expectations during uncertain financial times adds an extra layer of exhaustion. We get it. It’s hard to know where to find the right information when there seem to be endless options. 

That’s why we’re outlining the 5 steps you can take today to remove the overwhelm from selecting a mortgage. Being prepared for the mortgage process is the best way to arm yourself with the right tools and knowledge you need to face the next few months of the home buying process.

Set Your Budget First

The first step to determining the right mortgage for you is getting clear on your budget. Regardless of the mortgage loan options available Setting a budget is the best way to narrow down your mortgage options. 

Every mortgage loan option comes with specific lending requirements and thresholds. You want to be clear on several factors before deciding the best mortgage option for you, including:

1. Do you have money saved for a down payment? If so, how much do you have saved? 
2. What is your credit score Are there steps you can take to improve it Before starting your home buying process? 
3. How much money are you comfortable paying for mortgage and principal monthly payments? 

Once you have these numbers down on paper, check out our Mortgage Calculator To determine what your monthly mortgage payment could be. If you prefer to run these numbers to figure out a home price you can afford, check out the Affordability Calculator on the same page. 

Define Realistic Expectations

It’s no secret the housing market is undergoing some major shifts due to several current events affecting housing prices and supply. This is why our next tip on beating overwhelm during the mortgage search process is setting realistic expectations. 

It’s going to take some time before the market levels out again but setting realistic expectations of the type of mortgage that works for you is a good first step. Consider the type of home you’re interested in, and then search for the financing that can help you get there. 

With many mortgage options available to home buyers today, it shouldn’t be difficult to find a mortgage loan that can accommodate your budget, credit score, and expectations. Having said this, it’s important to make a list of amenities you’re ready to forego in order to secure your non-negotiables. This is especially important if you are forced to adjust your loan expectations.

Prepare Required Documentation

The paperwork associated with the home buying process is enough to scare even the most confident buyers from applying for a mortgage loan. It can be overwhelming to educate yourself about the mortgage process, but there is one surefire way to make this journey as seamless as possible: getting organized. 

Once you’ve determined which type of loan may be the best option, you can begin preparing the necessary documentation. Most mortgage loan types require the same basic information:

• Evidence of a qualifying FICO score
• Your household income in the form of recent W-2 forms 
• Any assets that can be used to pay your mortgage

Having this information organized and prepared before you apply for a mortgage loan will help you take the overwhelm out of the process. Saving the results of your Mortgage Calculator exercise can also help frame your budget for your realtor and your lender. 

Shop Around for Pre-Approval

Don’t make the mistake of getting pre-approved by just one mortgage lender. Different lenders may offer you different loan amounts with varying fees and interest rates. Assure the best fit by working with a few lenders to get pre-approved for the best mortgage loan for your financial situation and the home you want to buy. 

Once armed with your budget, credit score, and requirements, work with different lenders to find the one that offers you the best options for you. The only way you can beat the overwhelm that comes from selecting and being approved for a mortgage loan is by understanding all your options before making a decision. 

Work with a Lending Expert

The quickest way to take the overwhelm out of finding the right mortgage for you is to work with a lending expert. Sifting through hundreds of lenders and choosing the one that’s right for you and your home buying goals only adds to the stress of buying a home. 

Working with loan experts who know the ins and outs of mortgage financing while advocating for your best interest is what we do best at Lendevity. Our team of experts explains the different rates and terms simply, ensuring you make the best decision for your unique situation. 

We offer unique mortgage loan options that are right for your financial situation and match you with lenders we know will help you achieve your home buying goals. Reach out to us today if you’re interested in beating the mortgage loan stress for good. We’ll get you a free quote, and if you’re ready to commit, we’ll get you partnered with an expert to guide you through the entire process. 

Get started now.