How to Manage Stress During the Mortgage Process

Moshe Farber
27, Feb 2022

Stress Management During the Mortgage Process 

Buying a home is a pivotal life event. It’s natural to feel some trepidation and uncertainty about buying a home before and during the process. Luckily, a great loan officer will make the process far easier and more manageable. Having a competent loan officer by your side and educating yourself about the process beforehand will go a long way toward mitigating the stress that comes with securing a mortgage. However, it’s still likely you may experience some nerves along the way. If you want to make the home buying process less daunting, then in addition to hiring an expert loan officer, the following tips can help.

While getting adequate sleep and having a daily meditation practice are terrific ways to alleviate stress, there are many other things you can do as well.

Here are some things you can do to ensure a smooth and stress-free mortgage process as possible. 

Know the Process

You might feel overwhelmed in the beginning of the mortgage process with all the information that comes your way. Too often, the reason for a sense of overwhelm is not an abundance of information but the chaos which comes with being uninformed. Therefore the first step is to get to know the process of each phase of your mortgage journey. 

Knowing the fundamentals of each step of securing and paying off a mortgage will make you feel informed and empowered. Moreover, you will be able to filter useless information and concentrate on the most essential aspects of the mortgage. This will simplify your mortgage process and help you get some stress off your head. 

Make an Outline 

Once you educate yourself about the entire process, the next step is to make a plan. It is necessary to form an outline of the different phases of your mortgage to make it easy for you to fetch and document information throughout the mortgage process.

Given below is an outline that can assist you in coming up with your version of a mortgage timeline: 

Self-Assessment of Your Finances – Assessing your financial status is crucial for your investment journey while buying a house. You have a solid foundation to plan your loan application when you get a clear picture of your budget, credit, savings, and debt. It also helps you decide on the size of the loan you will apply for and the amount you can afford to pay independently. 

Loan Applications – This step will require you to submit your loan application to the selected lender and get pre-qualified. After being pre-qualified, you can submit documentation to prove the financial information you provided to the lender and be pre-approved for the loan. You will be required to demonstrate a responsible debt-to-income ratio and credit score. 

Mortgage Processing – Once you are done with your loan application, your loan file will be created. This file will include your complete application with other required documents. This requirement might slightly vary from lender to lender. 

Underwriting – The next step is for the underwriter to review your loan application and measure repayment risk. Depending upon the risk factor, the underwriter will review your file and give you conditional approval. 

The Loan Checklist – You must fulfill all the conditions that make you eligible for a loan. You will have to form a loan checklist with tasks to complete to get fully approved for the loan. These tasks might include getting a written quotation for your home, proof of insurance, and a debt-free status. 

Closing – The final settlement is the last step of the mortgage process. This involves reviewing all the relevant loan documentation with the buyer and seller’s attorney, as well as with the bank. Closing fees must also be paid as part of this process. 

You should make sure to keep all your legal paperwork organized with the help of your attorney and always keep an extra copy of each document for security and future reference.

Work Out your Credit Situation

Evaluate your credit score by getting a copy of your credit report. Take steps to improve your credit such as lowering your credit utilization rate and automating your monthly credit card payments. Having prior information about your credit score gives you enough time to improve it and significantly reduces stress. 

Your better credit score will help you secure better interest rates and more favorable terms for your mortgage. It will also add to your credibility as a borrower and make the preapproval process smoother.

If your credit score is average, there is still no need to worry. There are many ways to secure a mortgage with an average credit score too. 

Plan Out Your Budget

Buying a house involves much more than simply getting a quote from a real estate agent. It includes taxes, list price, insurance cost, and fees that you pay for getting a variety of services related to your future home such as mortgage insurance. It would be best to have a detailed budget to guide your monthly finances, considering your income and existing debts. 

Having a detailed budget will help you align your dream of owning a house with your financial reality. You can then determine whether or not you can realistically afford the home. Your budget will also guide you in getting an estimated figure of your loan and your monthly installments. 

Consider your budget planning with the 50/20/30 breakdown in mind. 50% of your recurring payment will go to utilities, car payments, health, mortgage, and other necessities. 20% of your revenue must go into your savings to prepare you for emergencies and provide financial security. The last 30% must be liquid and available for spending on recreation. 

If you can make your mortgage using 50% of your revenue or less, you will have enough space for accommodating other needs without compromising your financial health. As you consider your budget, you can be confident about your mortgage decision and prevent stress from undermining your mental health. 

Planning your mortgage in a hurry will make you a less calm, balanced, and happy person. It will add to your stress and reduce your ability to rationally compare potential options in the mortgage market. To have a good mortgage experience, you must start your homework early and conduct adequate market research. Your house will allow you to make memories of a lifetime, but creating a beautiful journey without stress and anxiety is paramount.

Above all, take everything one step at a time and remember to breathe. If you can keep calm and enlist the help of a trusted mortgage professional, your mortgage process will be quick, smooth, and unstressesful. 

Interested in getting a mortgage quickly and easily with no hassle or stress? Reach out to an Astar loan officer today! Email info@astarteam.com or call 888-ASTAR-11 (888-278-2711) to start the loan application process. 

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