Starting your mortgage application can be frightening, but it doesn’t have to be
Every American’s journey to homeownership is different, but nearly all of them involve a mortgage – and getting started with an application can be daunting and confusing. Lenders can require dozens of documents, the process can feel overwhelming, and everything needs to be done before the purchase deadline. If you’re still trying to figure out how to get started, the steps are quite simple.
Are You Getting Pre-Approved?
While many prospective homeowners will get pre-approved for a mortgage before shopping for a home, others will forego this option. There are distinct benefits to a pre-approval (we have a few key points here), but a pre-approval is by no means required. If you’re pursuing a pre-approval, make sure to make that clear to any broker you work with, as pre-approvals take mere minutes, as opposed to weeks with a full mortgage application.
Determine Your Deadline
As with many things, the first step to getting a mortgage done is figuring out what your timeline is. If you have a tight deadline, you’ll have to move quickly. If you’re purchasing a home, the purchase contract will have information detailing exactly when funds will be required – this is your deadline. But if you’re considering a refinance or another mortgage type, you’ll have to figure out that deadline yourself. For the mortgage application itself there will be other deadlines for when certain things are required, which your mortgage broker will discuss with you.
Talk to a Mortgage Broker
The next step is to talk to a mortgage broker. This isn’t just us pushing our own services, but giving you honest advice in your best interest. Mortgage brokers offer many advantages over working directly with banks, and we can help you with every step of the process. Make sure that you give them all the details of your mortgage – for example, the purchase price, down payment amount, and closing date – so they can give you an accurate list of preliminary documents to gather.
This leads us to the most important part of any mortgage proceeding: documents. Lenders will need several key documents from you over the course of your mortgage, and depending on your unique situation, what the lender requires can be different. However, there are several documents you can ensure you have on-hand, such as recent financial statements including credit cards and bank statements. Remember to ask your broker what they need, and how fast they need it!
At this point in the process, your mortgage proceeding has begun! Now, all that you need to do is stay in contact with your mortgage broker, and be ready for anything that comes up over the course of your application. You’ll most likely have to supply further documentation and information and be available to answer any questions the lender may have to keep the process moving smoothly.
Are you ready to start your application? Reach out to us and we’ll help get you started on the path to homeownership.