Getting a mortgage, especially if you are
getting your first mortgage, is not a difficult process
at all. The steps you should take to get a mortgage are
Check your credit roughly 6 months before you are ready to
buy a home, to make sure their are no errors on your credit and to see if
there is anything that can be done to increase your credit scores before you
are ready to get a mortgage
1-2 months before you are ready to begin, sit down with your
spouse and figure out a budget so that you know how much you and your family
can actually afford to pay on a monthly mortgage payment and still keep the
same lifestyle that you are used to.
After you have figured a budget you need to get
pre-approved. this should be done within 1-2 months before you are ready to
get a mortgage. You will need to find a good company to work with, provide
information, allow the mortgage broker to pull your credit and provide
income documents for him/her as well.
After you have a pre-approval and a price range in mind for
a home that is comfortably affordable for you, find a Realtor and begin
looking at homes. Stay within your budget. Do not go with something that is
more than you are comfortable with. This is how homeowners end up in bad
After you have found the house you like, make an offer on
the home. You offer will either be accepted, declined, or countered. Most
likely you will receive a counter offer and then you can again make another
offer if you desire or continue looking at other homes.
After you have an offer that has been accepted, your
mortgage financing will then truly begin, appraisals will be done, home
inspections (if desired) will take place, and arrangements for moving will
begin their preliminary arrangements.
Finally, after the mortgage is completed and everything else
has been done there will be the closing on your home. You will sign a lot of
paperwork, go over the final terms of your mortgage loan and pay any
additional money that is needed for closing costs, escrow accounts and/or
After closing you may receive your keys to the new home
immediately, or more likely at the end of the day or the following day. Read
your purchase agreement carefully to make sure of whether there is a
specific timeframe after closing that you will have to wait to receive your
Congratulations, you have just bought your new home and you
have gotten your first mortgage. Relax, get settled in and enjoy the
luxuries and benefits of owning your own home.
If your goal is to buy your first home there are many things you will need to do to make the process as easy as possible. The first step is to become pre qualified for a home loan from a qualified mortgage broker.
The information a qualified broker will need is your Income, Assets, Debts, Employment History, DOB, Address and most importantly your permission to run a Credit Report.
In order to get a mortgage you must first become approved for a mortgage. You will be approved based on your credit scores and/or credit history, debt to income ratios, assets, employment history, among a few other items. All of these items will basically decide how much of a loan you will be approved for, how much money, if any, you will be required to place as a down payment, and what kind of mortgage programs and mortgage interest rates you will qualify for.
When first applying, try to have your information available to you with regards to income documentation and banking information.
Before starting the house hunting and mortgage process, review you credit report. If there are any false information listed, have the credit bureaus correct them. If there are negative items on the report, try to remove them. A clean credit profile with high credit scores will get you a lower rate and a higher loan amount.
For any successful real estate purchase, prequalification is key for a smooth transaction. Prequalication informs you of how much you can purchase, how much your payments will be, what price range you should be looking in, or if you can afford the house that you are interested in, and simply if you are qualified right now to get a loan.
Knowing your credit situation can be very helpful in getting qualified for a mortgage. Your mortgage broker can help you review your credit and understand it. Taking care of issues before making an offer on a home can help make the process much smoother.
You know when you are dealing with a Professional Mortgage Broker when s/he queries you with numerous questions. The better the pre-qualfication process, the greater your chances of having a successful transaction.
If you are a self employed borrower talk with your mortgage broker about options for self employed borrowers. Self employed borrowers have different obstacles that must be overcome depending on how you are paid from you company.
If you have had credit issues in the past, do not be discouraged. Your mortgage loan professional will have access to dozens of mortgage lenders who specialize in offering programs to customers just like you.
If you have any questions regarding our products, you can contact
us by calling or e-mailing us and we'll get back to you
as soon as possible. Thanks!
Information listed above is to be used for educational purposes only and is not guaranteed