If you believe that you are ready to purchase a home, it's important that you take the proper steps in completing a mortgage home loan application. When you take your time finding a mortgage home loan that is going to fit your needs and you take the time to prepare yourself financially, you can be sure that you end up with the best possible loan that won't leave you with a financial burden in the future. Here are the five steps in applying for a mortgage home loan:
- Get Credit Score in Shape: Before you actually visit any potential lenders, you want to make sure that your credit is in decent shape. You should have a copy of your credit score that can tell you who you owe money to. You can also check for any errors that may be on your credit report so that you can have those fixed. During this time, you shouldn't be applying for any credit cards, car loans, or other things that are going to affect your credit score.
- Choose a Lender: When it comes to choosing a lender, you ultimately want a lender who is going to provide the best rates. This means you are going to have to visit a few different lenders to compare rates. One of the first places you may want to consider working with is your bank, especially if you have a good standing relationship with them. Also consider companies like Dynamic Mortgage Concepts Inc.
- Fill Out an Application: When you meet with your lender, you are going to have to fill out an application. This application is going to ask for a great deal of personal information, so be prepared to know what your social security number is, what your debt-to-income ratio is, and other important financial information. It should only take up to three days for you to receive an estimate from the lender after the application is submitted.
- Pay the Fees: When your application is being processed, your lender is probably going to ask for some up-front fees. These up-front fees are going to pay for the lender to access your credit, process paperwork, and eventually get an appraisal for your home. Be sure that you are prepared to pay for these fees.
- Pay the Down Payment: After you have chosen a lender based on the estimates you have received, you will have to pay a down payment on the loan amount. Most lenders will require at least 10% to be paid for the down payment unless you are applying for an FHA loan or other governmentally funded loan.
By knowing the steps in applying for a mortgage home loan, you will have a better idea of what you need to do each step of the way and ensure that you are fully prepared for the process.Share