Prepare Your Finances
Don't stress about your finances, but do choose professionals that can help you take care of them.
You’re just starting your search to purchase a new house – this is an exciting time! Before you schedule your first home tour, getting pre-approved for a mortgage is an important first step. A competent and trustworthy mortgage lender is essential during your real estate journey. You want a lender that is knowledgable and easy to get ahold of.
Here’s a checklist to get you on your way to buying the home of your dreams before you decide on the professional with whom you want to work with.
Gather documents: Your mortgage lender will provide you with a complete list of items needed when the time comes. Some of the most common documents needed are bank statements, a year of two of tax returns, proof of income, divorce papers if applicable, as well as proof of ownership of other real estate.
Make a list of debt: When you apply for a pre-approval, you’ll need to provide a summary of your debts, monthly payment amounts, child support payments and balances for credit cards, student loans, car loans, other property loans.
Know your credit score and keep your credit healthy: Credit Karma, Mint, Nerd Wallet, several banks, and other sites allow you to monitor your credit score. Those same sites offer educational articles on how credit scores are calculated and ways to maintain credit health.
Learn about the up front costs and make sure the funds are available: In addition to a downpayment, buyers often have a few other up front costs. They are responsible for paying for their home inspection and appraisal, and often have closing costs to cover.
Mortgage pre-approval success: Do some comparison shopping and contact multiple lenders. A home is likely the largest purchase you’ll ever make, so do your homework to ensure you get a competitive deal with a lender that is responsive, knowledgable, and caring.
Applying for your first mortgage? I’m happy to help you find an experienced mortgage lender with excellent reviews.