Qualifying for a mortgage is easier than you might think. Often times, it is best to get pre-approved before you start your home search to ensure you are looking at the right product segment. If interest rates are low this will also allow you to lock in the rate while you are looking. Here’s what you can expect when you begin the process:
1. Fill out a mortgage application. This is not a binding contract, it just helps your lender to pre-qualify you in regard to how much you qualify for for your mortgage amount. Expect to be asked questions regarding your income, your assets, and your debt load.
2. Your lender will ask for proof of documentation from you, the buyer. This will include such things as: proof of down payment, proof of income, income tax receipts, and information on any debt you may have.
3. Once your lender has assessed your situation and has pre-qualified you, they will help to point you towards the best mortgage product that suits your needs.
4. You can begin house hunting! Having a price range/budget when you start shopping will prove to be a huge help and will help to move the process around smoothly and quickly.