On the path to their dream home, buyers should make sure they’re financially prepared. As a real estate agent, you play a key role in setting expectations, offering guidance, and connecting buyers to resources that can make or break their approval odds.
Here are 6 tips you can share with your clients to help them navigate the mortgage application process with confidence and clarity:
1. Suggest a Review of Their Credit Profile
Encourage clients to pull their credit report from annualcreditreport.com, where they can get a free annual credit report. (Because this is considered a soft credit inquiry, it should not affect their credit.) To be in a better qualifying position, they should check for errors, decrease debts that are near their credit limit, and pay bills on time.1 Even modest improvements could lead to significant savings. Learn more about improving credit to secure a mortgage.
2. Spot and Resolve Inaccuracies
If clients find any inaccuracies on their credit report, advise that they dispute any incorrect accounts, outdated addresses or suspicious activity. Recommend credit monitoring tools to protect against identity theft that could derail their application.
3. Encourage Them to Explore Loan Options
Homebuyers deserve to know that they have options when it comes to mortgages, from Jumbo Loans to loans designed for buyers with little money saved for a down payment. Direct them to a Newrez mortgage expert who will walk your clients through loan options that make the most sense for them.
4. A Critical Step: Suggest Securing Pre-Approval
A Pre-Approval* tells homebuyers exactly how much house they can afford, and might also serve as a signal to home sellers that your client is a serious buyer. Let your client know that Newrez can run them through the Pre-Approval process quickly and smoothly, and advise them to gather the requisite documents for verification of their income and assets. Learn more about the importance of Pre-Approval here.
5. Encourage a Strong Down Payment
A 20% down payment may eliminate private mortgage insurance (PMI), depending on the type of loan, and may also improve loan terms. Even if that’s not feasible, contributing more than the minimum down payment may strengthen their application and lower their loan-to-value ratio.
6. Prepare for Closing Costs
Remind clients to budget for 2–5% of the home’s value in closing costs. In the days leading up to closing, review their closing disclosure with them and fill them in on aspects of closing such as the transfer of ownership, title insurance and beyond.
Homeownership Readiness
By sharing these insights, you empower your clients to approach the mortgage process with knowledge and clarity—and build a critical relationship with them through one of the most important financial decisions of their lives.
At Newrez, we want to be there for all sorts of borrowers. Reach out to learn about our extensive suite of loan products and find out how we can help you and your clients.
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