The mortgage market is a hit at the dawn of the post-COVID era. After a year of frugal pandemic living, Americans are ready for extra space in their homes. Because of an influx of potential buyers looking for their next home in the market and a low housing inventory, the market is getting very competitive. 

If you are one of these potential buyers, there are certain things you need to know and consider before jumping into things. Aside from getting a pre-approval letter from a mortgage lender, here are five factors you need to think about before applying for a mortgage.

  • Your credit

Always check your credit reports before jumping into a mortgage or any major purchase for that matter. Ensure there are no errors and know where you stand in your credit report. If you spot any errors, immediately report them to the credit bureau.

Most lenders require you to have a minimum credit score of 620, but some agencies are flexible and accept lower credit scores. The critical thing to remember is that the higher your score, the better your terms and interest rates.

However, if you have a really low credit score, you may want to explore options or raise your credit score before applying for any mortgage.

  • Your buying time frame

Pre-approval letters don’t expire until 60 or 90 days after, which gives you ample time to choose a house. The promise of lending is guaranteed for a certain period, and it depends on your financial situation. 

If you are not looking to buy a house for another six months, you don’t need a pre-approval letter. Also, if your search for the right home takes longer than the expiration date stated, you can always request a new one. Usually, it only takes the lender another look at your finances to approve it. 

  • Your needed documents

To get approval for funding, lenders will verify your income, employment, credit score, and assets. You can speed up the process by sending over all the necessary documents like pay stubs, tax returns, and bank account statements. 

  • Your research and knowledge

As soon as you find a lender you like, clarify if all the information is correct. In addition, you should have at least basic knowledge of comparing interest rates and a thorough understanding of your loan affordability. Both things play to your confidence as a buyer.

  • Your financial picture

Having other major financial responsibilities such as debt can affect your mortgage approval. If you need to buy a new car or pay off a large debt, it is better to take care of that first before the mortgage process is complete.


Buying a new home is a big financial decision. As a buyer, you should have basic knowledge of the mortgage market to arm yourself from any inconvenience. Find a suitable lender and get your dream house at your money’s worth!

If you are a buyer or beginning your home search, we can assist you in making a smooth financial transition. Our specialists at NetLending will help you get the best deal and the best rates with our hassle-free housing loans. Looking to get pre-approved for a mortgage? Get in touch with us today!