Apply for a Mortgage
Applying for a mortgage is the first step to buying a new home. Filling out a complete and accurate application can be a huge time saver down the line. Get all of your information together ahead of time. Have last year's tax documents, a pay stub, and a bank statement on hand when you get started. Be prepared, and the application process will go much quicker. Here are the most important things on which to focus during the mortgage application:
- Employment Information: Mortgage lenders calculate their risk based on your habits; and your employment and income habits are of paramount importance.
- Residence History: Where have you lived over the past few years? Did you rent or own? This is reflected on your credit report in most cases, but lenders will want to know how long you have lived in a given location, if you rented etc. so they can make sure you are a viable credit risk.
- Credit History: First, you should know exactly what is on your credit report and what your credit score is. So by completing this application, it will allow us to go over your history with you before the lender reviews your file.
- Cash Flow: Accurately report your expenses and payments. The lender will calculate what you can really afford for a reason and so be as accurate as possible so that if we have to prove your income, there will be no problems. Lender guidelines for debt to income ratios are put in place to protect both the lender and the consumer.
- Additional Assets: Collateral can be a big piece of whether or not you get a loan. Do you have a car? Bank accounts? An IRA? All of these will affect your ability to get a home mortgage.
