Getting Mortgage First approval is the first formal step toward buying a home. But there are plenty of things you can do to be ready even before you complete an application. By being prepared before you talk to a mortgage loan officer, you can make the process faster and easier.
Look At Your Credit History
Your credit score can significantly affect the interest rates available to you on your mortgage. Before you file an application, check out your credit reports to make sure there are no surprises. You can get copies your reports from all three major bureaus free online at AnualCreditReport.com. If you aren’t happy with your score, you can pay down credit cards, and work with a credit management company to correct inaccurate reporting and other credit problems. But this can take time, so get started early.
Save Up A Down Payment & Closing Costs
The more cash you have available to put toward the down payment and closing costs on your home, the more mortgage options you may have. While certain loan options can require as little as 1% down, they could have cost you more in interest and fees over the long run. Rather than rushing to buy, be patient and save up your money for a sizable down payment and closing costs.
If a family member or friend is giving you the down payment as a gift, make sure you are ready to explain it. Remember that a loan to a family member can still affect your loan approval and mortgage rates.
Know What You Can Afford
A Mortgage First approval can tell you how much a lender would be willing to give you for your house, and what your mortgage costs will be. But you don’t necessarily want to spend everything you have on the house itself. Before talking to a loan officer, take a close look at your budget. Make sure you account for your needs, your lifestyle, and any redecoration costs to make sure you can live in your new home.
Gather Your Proof of Assets
Applying for Mortgage First pre-approval involves a lot of paper. You need to be ready to prove all your assets and payment histories. Before you apply, gather together:
- W-2s, pay stubs and tax returns to show income
- Social Security paperwork and child support orders to show supplemental income
- 12 months of rent payments and a written referral from your landlord
- Government ID and personal documents like divorce or bankruptcy papers
- Account statements from banks, IRAs, stock investments, and retirement accounts
- Proof of property ownership such as deeds
Get Ready for Pre-Approval With 1st Securities Financial
Once you have finished your pre-approval check list, it’s time to get 1st Securities Financial on your team. Fill out an online application to get the formal process under way.
