Three Basic Steps to Applying for a Home Mortgage
Getting a mortgage is part of almost every person’s home buying process. While the process is now standardized, a lot goes into getting a mortgage. If you’ve never done it before, it can get overwhelming to dig through all the details.
Luckily, there are a few standard steps you can expect to take when you apply for a home mortgage. Below are three steps you need to take when getting a first home mortgage.
1. Gather Your Documents
You’ll need to provide a lot of financial information to get a mortgage. You need to prove that you can pay off a mortgage if you want a lender to give you money. Here is some of the financial information you need for your mortgage:
- Credit card score
- Yearly income
- Current debt
- Other assets
You may have other sources of income and expenses that don’t fall into the standard categories a person usually has. If so, you’ll also need to provide your potential lenders with this information. The more you can paint the picture that you’re a reliable borrower, the better chance you have of successfully getting a mortgage.
2. File Your Mortgage Application
Once you gather all your financial information, it’s time to start the application process. Look at all the lenders in your area and check to see what qualifications they have for mortgages and your expected rate estimations.
Some lenders also have a home mortgage calculator available to provide rate estimates.
Don’t stop with one lender during your search. Apply to as many lenders as possible to see your options and which lender offers the best deal. Once you gather your list, get the mortgage application from each lender and give them all the information they ask for.
3. Get Application Results
Once you fill out your applications, it’s a waiting game until you get your results from your lenders. Luckily, you should get answers fairly quickly, depending on your lender. Once you do, compare each lender’s home mortgage interest rates to see what they can offer.
Try not to choose after you start getting your applications back immediately. Some lenders take longer to process applications. When you’re getting a mortgage that will take decades to pay off, you need to make sure you find your best option.
Once you make your choice, the underwriting process will begin. A lender goes through this process for loan verification to ensure all the information you provided is correct. You’ll need to wait some time for the process to complete, but you’ll have your mortgage once your lender completes their underwriting.
Now You’re Ready to Apply for a Home Mortgage
A lot can go wrong when you apply for a home mortgage, so you can’t afford to make a mistake during the process. You need to understand everything that goes into the process to ensure you cover every little detail. Remember the short guide above when applying for your home mortgage to ensure you do things right.
Once you complete the mortgage process and get financing for your new home, it’s time to start the house-hunting process. Check out the latest articles on the blog to learn more about what to look for in a new home.