How To Apply For A Mortgage Loan – Mortgages USA

How To Apply For A Mortgage Loan

5 Tips to Help You Get Approved Faster

Buying a new home is exciting. You get to discover new neighborhoods, find the perfect house and make it your own—but before you move in, you may need to get a mortgage loan. While shopping for a mortgage loan isn’t as exciting as picking paint colors, it is rewarding to know you’re getting the best loan terms possible. Here are 5 tips to help you get approved faster, and at the best available mortgage rates.

  1. Gather your documents.

There are many documents your mortgage lender will request from you, and the sooner you have these available, the faster the approval process will be. Gather your most recent W-2s, pay stubs, and tax returns as proof of income. If you’re self-employed, you’ll also need profit and loss statements and 1099s. Have earnings outside of work, such as child support, alimony or rental property? Bring documentation for these, too. Mortgage lending companies will use these items to evaluate your income and expenses.

  1. List debts and assets.

Create a list of all your debts, including credit cards, student loans, and auto loans. You’ll also need an inventory of assets, including real estate, bank statements, vehicles and investments. Debts and assets are used to calculate your debt-to-income ratio, which helps determine your credit score, as well your mortgage rates and maximum mortgage loan amount—so it’s important to provide the most accurate information possible. If you’ve had a recent bankruptcy, you may need bankruptcy discharge papers.

  1. Know your credit score, and keep it high.

This one’s easy—you can receive one free credit report from each of the three major agencies every 12 months. Mortgage lending companies use your score to determine what mortgage rates they are able to offer you. While checking your score won’t affect it, a few other things will. Opening new credit cards, maxing out cards, co-signing a loan and making late bill payments all lower your score, so avoid doing these things before applying for a mortgage loan.

  1. Avoid making large purchases—or big changes.

If you’re considering buying a car or taking out a personal loan, it’s better wait until after your mortgage loan closes. If you appear over-extended, your mortgage lender may not approve your loan. It’s also best to keep your current job, showing steady employment.

  1. Know what you can afford, and start saving.

Decide how much home you can afford, and how much money you will need for a down payment—this mortgage loan calculator can help. You’ll need to account for closing costs, as well. Factor in about 6% of the home’s purchase price as a starting point, but ask your mortgage lender for more details. You may be able to roll some of these costs into the mortgage loan.

Have questions about how to apply for a mortgage loan?          

Ask us anything. At Mortgages USA, we know you have many choices in mortgage lending companies, and we and we want to make the application process as easy as possible. Contact us today to talk with an experienced mortgage loan officer. We look forward to serving you.

 

How much home can you afford?

Find out with our mortgage loan calculator.

By | 2018-05-29T18:00:30+00:00 May 29th, 2018|Uncategorized|0 Comments