How to Get a Mortgage
Get an understanding of how the loan process works, and you’ll take a load off your shoulders. Below we’ve outlined the steps to securing a home mortgage!
1. Sort and organize all necessary documents for your Mortgage
Lenders will request a long list of documents when you apply for a mortgage, so getting them ready early will save you time. What they want to see is proof that you can repay your loan, which includes documents such as a record of your employment, bank statements, tax returns, credit checks, and pay stubs. They’ll also take into consideration costs such as child support and alimony payments. The more information you can provide about your income, the better. If you have debt, your credit check should show that you’re regularly working towards paying it off.
2. Get pre-qualified or pre-approved
Getting an idea of how much of a loan you qualify for can happen in two different ways. The first is to get pre-qualified, which means the lender takes a quick look at your files and gives you a price range.
Pre-approval is lengthier, and while you do have to wait, we almost always recommend getting pre-approved for a mortgage. It shows that you’re able to buy, which can give you a leg up during the negotiation stages.
Either way, knowing what you can afford will save you time when searching for homes, not to mention help keep expectations in sight.
3. Set up the loan
From the length of the loan to the rates and fees, there’s a long list of items to consider when you’re putting together a loan. This is there your loan officer will really lend a hand. This tedious process is often simplified when you, the officer, and your REALTOR work together to put together a loan that meets your needs.
4. Finalize approval
Now that you have the house of your dreams in sight, the next step in receiving a mortgage is your loan officer will return to all of the documentation you supplied during the pre-approval or pre-qualification steps. They’ll look at employment, credit, and other assets. If they request any more documents, provide them as quickly as possible. It’s important to avoid making any large purchases until the loan closes, so you don’t set off any red flags. Now you can schedule your closing date and time!
5. Close on the loan
Closing on the loan means sealing the deal on your financing. All of the final documents will be signed, typically with a notary present. Double check the loan amount and all other terms, including the interest rate. Look at details as simple as your name and address; you don’t want any hiccups. Pay your closing costs and down payments, and you’ll be on your way!
Mark Spain Real Estate is here to help our clients in any way we can! One of our core values is to lead with a servants heart. We strive to exemplify that in all that we do. We truly care about our clients and want to help them succeed in all of their real estate goals! To do so, it is important to understand what each term in real estate transactions mean so they can glide through the process smoothly! We put our clients needs first and do all that we can in order to not only reach their goals but exceed them!
Contact us on how to finance your next home purchase!