You’ve found you a forever home, and now you are looking for a mortgage. What do you need to do to start your application for a mortgage and start you off in the right direction? Here’s how to apply for a mortgage loan.
Start working on your credit score. This is the first step you need to take. If you have a low credit rating, it is still not impossible for you to get a mortgage loan, but you will not be getting the best rates in the market. G t a copy of your credit report and make sure that everything you find there is correct. If you see any discrepancies, report them for correction immediately. Or you can wait a few more months before applying for a mortgage and start repaying your debts to improve your credit score.
Research the different lenders and the kind of mortgage they offer. FHA, Conventional mortgage, VA, Fixed-rate, adjustable-rate – these are terms you need to familiarize yourself with. The different kinds of mortgages have their advantages. Do you want a 15-30 year fixed or adjustable-rate mortgage? If your credit score is low and you can only afford a 3.5% downpayment, then an FHA mortgage might be for you.
Choose your lender and start the process. By this time, you are already quite sure of what you want, and the processing of your loan can begin. Loan processing until closing can take about one month. You’ll be submitting all your financial documents, such as proof of your income, assets, and debts, and credit history. The lender will inform you if there are other documents you need to provide. Once you have submitted the necessary documents, there is nothing else to do but wait for the closing.
Don’t feel overwhelmed with the paperwork. Take it one step at a time. Before you know it, the keys to your dream home will soon be in your hands. Contact us if you need to learn more.