A mortgage is a home loan that allows buyers to purchase a property without paying the full cost upfront. At HomeSimply, we help homebuyers understand how mortgages work, including loan terms, interest rates, and monthly payments. Whether you’re a first-time homebuyer or refinancing an existing home, understanding the mortgage process is the first step toward making confident financial decisions.
Prequalification vs. Pre-Approval: What’s the Difference?
- Mortgage Prequalification:
A quick estimate of how much home you may be able to borrow based on basic financial details like income and debt. Mortgage prequalification is a helpful first step for homebuyers who are just starting the mortgage process with HomeSimply. - Mortgage Pre-Approval:
A more formal step where a lender reviews your financial documents, credit score, and income to determine how much home loan you qualify for. A mortgage pre-approval letter from HomeSimply shows sellers you’re serious and strengthens your offer when buying a home.
Qualifying for a Mortgage with HomeSimply
When applying for a home mortgage, lenders typically review several key factors to determine eligibility and mortgage rates. HomeSimply helps guide borrowers through each of these requirements to make qualifying for a mortgage as straightforward as possible.
What Mortgage Lenders Look At
- Credit Score
Your credit score plays a major role in qualifying for a mortgage and securing competitive mortgage rates. Conventional home loans often require a 620+ credit score, while FHA mortgages may allow lower scores. - Debt-to-Income Ratio (DTI)
Lenders review your debt-to-income ratio to ensure your monthly debts don’t exceed a manageable percentage of your income. Most mortgage programs prefer a DTI below 36%, though some home loan options allow higher ratios. - Income & Employment History
Stable and consistent income is essential when qualifying for a home mortgage. Self-employed borrowers may need to provide additional documentation during the mortgage approval process. - Assets & Savings
Lenders verify available assets to ensure you have funds for a down payment, closing costs, and financial reserves. Having savings in place can help improve your mortgage approval chances.
Types of Mortgages Available Through HomeSimply
- Types of Mortgages Available Through HomeSimply
- Choosing the right mortgage is one of the most important decisions in the homebuying process. HomeSimply offers a variety of home loan options designed to fit different financial goals, credit profiles, and property types.
- Fixed-Rate Mortgage
A fixed-rate mortgage offers stable monthly payments with an interest rate that stays the same for the life of the loan. This is a popular option for homebuyers who want long-term predictability and consistent mortgage payments. - Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage typically starts with a lower fixed interest rate for an initial period, then adjusts based on market conditions. ARMs can be a good option for buyers who plan to move or refinance before the rate adjusts. - Conventional Mortgage
Conventional home loans are not backed by the government and usually require stronger credit and income qualifications. These mortgages are ideal for borrowers with solid credit and stable financial profiles. - FHA Mortgage
FHA loans are government-backed mortgages designed to help buyers with lower credit scores or smaller down payments. HomeSimply offers FHA mortgage options with flexible requirements for first-time and repeat homebuyers. - VA Mortgage
VA loans are available to eligible veterans, active-duty service members, and surviving spouses. These mortgages often require no down payment and offer competitive mortgage rates. - USDA Mortgage
USDA loans are designed for homebuyers in eligible rural and suburban areas and often require no down payment. These government-backed mortgages help make homeownership more accessible.
Mortgage Process & Timeline
Understanding the mortgage process helps reduce stress and keeps your home purchase on track. HomeSimply guides borrowers through each step of the mortgage timeline with clarity and support.
Closing on Your Home
Sign the final mortgage documents, pay remaining costs, and receive the keys to your new home.
Preparation
Review your credit score, establish a budget, and save for a down payment. Preparing early helps improve mortgage approval and access to better mortgage rates.
Mortgage Pre-Approval
Getting pre-approved shows sellers you’re a serious buyer and helps you understand how much home you can afford before starting your search.
House Hunting
Work with a real estate agent to find homes that fit your budget and goals while staying within your pre-approved mortgage amount.
Mortgage Application
Once your offer is accepted, submit your full mortgage application and required financial documents to HomeSimply for review.
Mortgage Underwriting
During underwriting, lenders verify income, assets, credit history, order an appraisal, and confirm the property details.
Closing Disclosure
Review your closing disclosure at least three days before closing to understand your final loan terms, interest rate, and closing costs.
Down Payment & Closing Costs
Down Payment: Often 20% to avoid PMI, but some loans allow less.
PMI: Protects the lender if your down payment is under 20%.
Closing Costs: Typically 2–5% of the loan amount. Paid mostly at closing, though some upfront fees apply.
CONCLUSION
Buying a home doesn’t have to be confusing. From pre-approval to closing, understanding the mortgage process helps you make smarter decisions and reduces stress. HomeSimply is here to guide you through each step so you can confidently secure the right mortgage for your needs.
