As a home buyer today it is so very important that you have done your research/homework with whatever avenue that you are using to purchase your new home. In other words, if you are going to have to finance your property, you should have spoken to a mortgage/bank representative and gotten, at least, a pre qualification letter, at best, a pre approval. If you are going to be paying cash for your purchase, you will need to show proof of that cash. If you are going to be getting money from someone else to pay cash for your new home, then you will have to have proof of funds from that party. You should know up front just how much that cash funding will be.

Many buyers today are thinking that because the housing prices are so low, that the mortgages are easier to obtain. This is not the case at all. I read an article over the weekend that actually stated that the Mortgage Bankers Association estimates that about half of all mortgages are being turned down. Mortgage qualifications have gotten tougher. You can no longer just state your income without showing proof in the way of pay stubs, W-2′s and/or tax returns. You must have stable employment; and, your credit score has to be higher than in the past to qualify you for today’s mortgages.

Funds used for your down payment can either be a gift, as in the case of an FHA mortgage or at least a 20% down conventional mortgage. However, the lending institution will require proof of where the funds came from along with a gift letter from the giver. Also, there are many cases where the buyer does have to have at least a certain percentage of their own money involved in their transaction; and, that money has to have an acceptable paper trail.

Getting a mortgage is a much more complicated process today; but, if you have the right frame of mind, follow the instructions given to you by the lender and have the patience to do what is necessary, the end goal will be obtaining your mortgage to purchase your new home.

It is never too soon to seek out mortgage counseling if you are thinking of a purchase in the future. The more prepared you are the better your buying experience will be all the way around.