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5 STEPS FOR GETTING A MORTGAGE

1. EVALUATE AFFORDABILITY: Lenders and mortgage insurers look at a variety of factors, but the two most important are your monthly mortgage payment and your total debt load, relative to your gross income. As a home buyer, it’s also important to consider additional expenses, beyond your mortgage payment, that can impact how much home you can afford. Depending on your situation, these other expenses could include property taxes, mortgage insurance, homeowners insurance, home maintenance expenses, homeowner association fees, parking expenses, and utilities.
2. DISCUSS YOUR OPTIONS: Deciding what type of mortgage is best for you depends on your personal situation, your financial scenario, and your future plans. For example, if your down payment isn’t large enough to qualify for a conventional loan, an FHA mortgage can be an excellent option. Mortgage programs are always changing, so ask your REALTOR® about current options.
3. INTERVIEW LENDERS: Your REALTOR® can provide several recommendations, based on past home buyers’ experiences. Rates and fees are typically very competitive between lenders, so it’s often more important to focus on other factors, including the level of service provided and how well they’ve executed transactions for other buyers. Make them earn your business and understand that different lenders have different levels of cost and flexibility. The type of mortgage you are seeking may also impact your choice of lender, since some are more familiar with certain mortgage programs than others.
4. GET PRE-APPROVED: Completing a loan application with one or more lenders will help confirm whether your intended mortgage financing plans will work out as hoped, or if you must modify your plans. It’s important to understand since preapprovals are contingent upon the lender receiving full documentation, your preapproval does not guarantee that you have a mortgage. Still, it’s an important 1st step that will also put you in a better negotiating position with sellers and make your offer more presentable.
5. COMMIT TO A LENDER: As soon as you are under contract to purchase a home, commit to working with one lender to complete your mortgage application. Show your lender that you are serious about working in partnership with them by submitting all the required documentation as quickly as possible. Following these 5 steps will greatly improve your results in getting a mortgage.