How to apply for a mortgage: a step-by-step guide
Read our ultimate guide to the process of applying for a mortgage. Learn how to increase your chances of getting approved by avoiding rookie mistakes and making smart financial choices.
Everything you need to know before applying for a mortgage
Mortgages are a big decision! But don’t worry. We’re here to help make the process as easy as possible. This step-by-step guide will teach you how to apply for a mortgage!
So, whether you’re a first-time home buyer or just looking to refinance, read on for all the necessary information! Let’s get started with your house-hunting journey!
When applying for a home loan, applicants must meet some borrowing requirements to qualify.
For example, most lenders require a minimum credit score of at least 620 for conventional loans. For government-backed loans, a minimum of 580 is required.
Additionally, when it comes to the debt-to-income ratio, lenders require no more than 50% for conventional loans.
Borrowers also must be at least 18 years old. Depending on the lender, they can have additional requirements, so confirm that you meet them.
Furthermore, besides the minimum borrowing requirements, lenders will require paperwork to confirm your information and ensure you’ll make your mortgage payments.
Let’s take a look at the documentation needed.
Mortgages involve some paperwork. So if you want to speed up your mortgage process, remember to have the right documentation when applying.
Firstly, your lender will require proof of income. Therefore it includes at least two years of federal tax forms, the two more recent W-2s, and pay stubs.
You’ll need to provide 1099 forms or profit and loss statements if you’re self-employed.
In case of divorce decrees, child support, or legal documentation confirming you’ll receive these payments for at least three years.
Also, you’ll need your credit documentation and proof of your assets and liabilities.
It includes up to 60 days of account statements and proof and verification of any funds deposited into your account within the last two years.
These are the most common documentation requirements. Therefore, always remember to check with your specific lender before applying.
How to apply for a mortgage?
The mortgage application process is simple! But first, you need to research and understand how the mortgage market works.
After that, you can start your homebuying process. Shop around and find the property you want to finance.
Once you have the home value in mind, it’s time to look for the best lender for your needs.
In most cases, you can prequalify online and review the mortgage offer you qualify for! On the lender’s website, you’ll provide some basic information and see if you’re preapproved.
After choosing a lender, you must review the loan offer and choose a mortgage. Next, you’ll have to answer some additional questions and provide the documentation required.
Lastly, it’s time to close your mortgage. Review your closing statement; you can sign the final paperwork if it’s all correct.
Pretty simple process, isn’t it? After that, you can get the keys to your new home! Are you ready to get started with your homeownership journey? Great!
Find an option to buy your house: Rocket Mortgage
Now that you know how to apply for a mortgage, it is time to start your homebuying process! To help you with that, we have a great lender!
Meet Rocket Mortgage! This lender has a simple online application process and a good variety of home loan offers. Furthermore, it provides excellent customer service to its clients!
Are you interested in learning more about Rock Mortgage? Then keep reading. Find out how to apply for this lender and what are the minimum borrowing requirements! Let’s get started!
About the author / Beatriz Vieira
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