It is not easy to buy a home using one’s savings because a lot of money will be required. This has been the limiting factor to many families, but their dreams can be realized through taking mortgages. However, one may be left with a question on how to apply for mortgage. The good news is that applying for a mortgage is simple, but it is important for one to understand how the process works. In addition, one has to have the knowledge on the requirements that he/she will be required to provide during the application process.
How to apply for mortgage
One will be required to have the following items in place when it comes to applying for a mortgage. They include bank statements, social security number, stock account information and income information. There are many mortgages offered by different lenders with different price tags on them. This calls for the need to shop around in order to decide on the best deal. One has to look out for the interest rates and closing costs. During shopping around, one is supposed not to give a copy of his/her credit report to the loan officer until he/she has decided on the lender to work with.
Once one has decided on the lender with the best deal, then one has to book an appointment with the loan officer. The initial appointment should be completed. At this point, one should already have decided on the cost that he/she will incur on the loan. This will give room for the next step, which involves determining the amount of money that one can afford to purchase before looking around for the best home. This will followed with a call, whereby the borrower will be required to provide a certain information. The information will entail one’s monthly income, personal debt payment, amount of down payment that one wishes to contribute, bank account balances and social security number.
Additional steps involved
The next step on who to apply for mortgage demands that loan officer should examine the borrower’s credit report, calculate his/her income and existing debts. Through this information, the lender will determine if the borrower qualifies for the mortgage. If one qualifies for one, then a face-to-face meeting will be set up with the lender. At this point, the borrower will be required to provide physical documentation of the information that he/she had provided online. This will be used to verify if the information given is correct and for future reference.
In addition, one will be required to provide his/her financial information, such as copies of last two paychecks and bank statements and much more. In most cases, the borrower will be required to pay an application fee, which will be used in paying an appraisal on the home.
Conclusion on the application process
Lastly, one will be required to sign the application as well as disclosure statements. This is done at the face-to-face interview with the loan officer. There are other additional steps that one will be required to follow until the application process is fully completed.