Navigating Mortgages

Sunday’s issue of the Daily Press highlighted key components to remember when qualifying to purchase a home:

  1. navigating mortgagesPay less mortgage insurance – Talk to your lender about different loan types, downpayment requirements, and private mortgage insurance choices.  Selecting the right products to fit your budget can help save money.
  2. Prequalification – Pick a lender who offers a thorough prequalification process.  By offering information upfront, this helps avoid hiccups down the road.
  3. Maintain credit – Keep financials steady between prequalification and closing.  Changes to credit (large purchases or balances) can influence rates and fees.
  4. Get organized – Start collected documents such as W-2’s, bank statements, and tax returns.
  5. Don’t move money around – This includes transferring money from checking to savings.  Save it for after closing.
  6. Prepare to write letters – Lenders look under every rock and need explanations for any oddities.
  7. Get your gift funds early – If a family member plans to help with the downpayment through gift funds, make sure it’s deposited 2 months prior to contacting a lender for preapproval.
  8. Plan ahead if self employed – If you are self employed, anticipate stricter lender guidelines.  Be prepared to provide 2 years of tax records and employment history.

Lenders can help guide you through these hurdles and explain the prequalification/closing process in details.  For a list of reputable lenders in Hampton Roads, contact me today!

Hampton Roads Real-e-statement is written by Alyssa Godwin, a Realtor with Liz Moore and Associates. For questions regarding buying or selling contact Alyssa at 757-329-6161 or You can also find Alyssa on Facebook or on the web at