When speaking with potential home buyer’s we always recommend they should shop for a mortgage before looking at houses.  The reasons for this are many.

Knowing the full picture of what you qualify for and what your payment will include.

• Knowing what to expect from the mortgage process.

These are all important steps in purchasing a home.   I ran across this article on this very subject in The MReport and thought I would share.

Why Shopping for a Mortgage First Helps

Low- and moderate-income homebuyers tend to focus their efforts on shopping and negotiating for their house with very little focus on shopping and negotiating for their mortgage, according to a recent study by Fannie Mae.

The study followed 14 low- and moderate-income families through their home search over a period of four to nine months. At the end of the study, about half were able to purchase a home. The other half returned to what Fannie Mae calls the “preparation phase,” which includes budgeting and building credit or income history.

Income instability and insufficient credit held these homebuyers back from experiencing a smooth purchasing process. The participants also demonstrated a lack of knowledge and engagement with the mortgage process.

Throughout the homebuying process, the participants “focused overwhelmingly on the home search,” considering the location and various features of the home itself, according to Mark Palim, VP and Deputy Chief Economist, Fannie Mae.

However, they did not offer the same level of attention to the mortgage.  “Research participants considered the mortgage as a hurdle to overcome throughout a time-pressured home purchase process, not a focus,” Palim said on Fannie Mae’s Perspectives blog.

To read the entire article click here 

Are you ready to explore the process and start to shop for a mortgage?

Contact us and let us provide you with the materials and steps to start the process today!