Getting a mortgage can be confusing, especially for first-time homeowners. There’s a lot of rumors around claiming that to get a mortgage you need to have perfect credit and a large sum of cash available for your deposit. These rumors can certainly make applying for a mortgage seem intimidating. But at City Creek Mortgage, we believe that everyone deserves the opportunity to have their own home. We know how scary it can be when looking at the options, but we’re here to help. So if you’re intimidated by a mortgage, here are five reasons you shouldn’t be.
Most Companies Want to Lend You Money
Because a company is loaning you money, it’s easy to think they’re going to want to be stingy and avoid doing so. But the truth is just the opposite. Most lending companies want to loan you money because that’s how they make money. When a potential buyer calls or enters the office, the loaner wants them to become a customer so they can get paid later on.
However, loaning money is still a big risk. This is why there are rumors about perfect credit and 20% down payments. While it’s true that a loan company wants you to be a client, they also have to protect themselves and make sure you’re able to pay them back with interest. They want to work with you, though, so companies will work hard to find a mortgage that fits your needs, even if your credit is less than stellar and you don’t have a lot of money for a down payment.
You Can Still Get a Mortgage with Gaps in Employment – Ask How at City Creek Mortgage
It’s important to any lender to ensure that the recipient of the money is going to be able to pay them back. Most loan offices will require proof of employment for the last two years or so to do this. However, especially these days, companies understand if there are gaps in employment.
If you do have gaps in your employment, write a letter of explanation along with your application. As long as the gaps are relatively short and/or with good reason, most companies will still loan you money as long as you are currently employed. Reasonable gaps in employment include (but aren’t limited to) being laid off, being unable to work due to an injury, and taking care of sick family members.
Proper Documentation Saves a Lot of Time
Mortgage applications are hefty and require a lot of paperwork and verifications. Having all of your documents prepared ahead of time makes the process much simpler. If you have all your documents organized and ready before you begin an application, you’ll wonder why you were so stressed about it in the first place.
When applying for a mortgage, you’ll need the following documents:
– Verification of employment for up to two years
– Tax returns for up to two years
– Pay stubs or other proof of income
– Bank statements and list of assets
– Credit reports
– Photo I.D.
– Renting agreement and proof of payment (if currently renting)
If you have all of this ready to go before you start applying, you’ll not only save yourself time and money, but you’ll also show your lender that you are responsible and organized.
Photo by John Schnobrich on Unsplash
You Are in Charge
Although the lender has the money, it’s important to remember that you are in charge of the process. It’s going to be your mortgage for your home, so it has to be something that works for you. Don’t let a lender pressure you into an agreement that you don’t feel comfortable with. It may seem easier to go along with them out of fear of not getting approved, but they need your business. There are dozens of mortgage lenders in any given area, and they know you can always go somewhere else. The customer is always right, and only you know what’s best for your budget/needs.
There are Several Options to Choose From With City Creek Mortgage
If traditional mortgage options and routes don’t appeal to you, there are several different packages you can choose from. Mortgages are flexible, and you can mix and match almost any length, type, and interest rate percentage. Work with your lender to discover which option is right for you and your home buying needs.
Buying a home doesn’t have to be intimidating. Applying for a mortgage through City Creek Mortgage means you stay in charge through the whole process and have control over what type of mortgage you need. With our help, you can organize your documents and speed through the process with ease. Then you’ll wonder why you were so worried in the first place. So give us a call at 801-501-7950 to get started.