These days, getting a house mortgage can seem like a daunting task. There are a lot of factors to consider; income, credit scores, and down payments, just to name a few. It can be difficult to tell if you’re even ready to start the process toward home ownership. Luckily, simply knowing how to get a house mortgage takes a lot of the guesswork out and stars you down the right path.
Step One: Gather Your Documents
Every single lender or bank you talk to will invariably ask you for some very specific documents. By beating them to the punch, you are already ahead of the game. Aside from your personal identification, you will need:
- Employment Verification – You need a letter from your employer stating that you do, in fact, have a job. The letter needs to state how long you’ve been working at the location and what your salary is.
- Proof of Income – Once everything is said and done, the lenders are going to want to make sure they can get their money back. Having two years’ worth of tax returns handy will help to ease their concerns.
- List of Debts and Assets – Make sure you include everything, because the lenders will double check. Things like car payments, credit cards, and anything else you may owe money on all count.
Step Two: Pre-Approval
Buying house is far less stressful when your mortgage is already pre-approved, because then you know the money is there waiting for you when you are ready to look for a house. To get pre-approved, contact the bank or lender. They will ask for the aforementioned documents, and may ask some additional questions, including if you have a down payment available.
After that, they will work their magic and come back to you with a figure you should reasonably be able to afford. That’s going to be the purchase price of your home. Armed with this information, you now have a very good idea of what houses will be in your price range.
Be sure to check with different banks or lenders, as some of them may offer different interest rates, so don’t just take the first offer you come across. Alternatively, you can use a mortgage broker. It’s their sole job to do the shopping around for you in order to get you the absolute best rates in the business.
Step Three: Find A House – Final Approval
Okay, you’ve gone through steps one and two and you’ve settled down on the perfect house. Great! Now you have to just get final approval for your loan. Since you are already pre-approved, this step should take no time at all. The lender will probably ask to have a house inspection done and probably an appraisal. Once those are done, barring any major unforeseen issues with the house, you should be good to go. All that’s left is to sit down at the closing and sign on the dotted line.
If you’re ready to take the plunge and get a house mortgage, be sure to contact Steve Crews at www.mymortgagebroker.com. He, or his staff, can answer any and all questions relating to mortgages, pre-approval, and home ownership.