A Mortgage Application Guide for St. Louis Homebuyers
For as exciting buying a home can be, it also is a very stressful process, especially when it comes to the mortgage application process. In order to create as smooth a process as possible, you need to make sure that you ask the right questions and follow the right steps. To help ensure that you are successful make sure you follow these five steps when applying for a mortgage.
Know What You can Afford
Before you start looking at homes it is important to understand what you can afford. You don’t want to fall in love with a home that is out of your price range, as this can be very discouraging. You can calculate what you can afford online using an affordability calculator, using what you plan to put down as a down payment along with some basic information about your income.
Begin the Mortgage Process
You want to start working with a lender as soon as possible because there will be a lot of paperwork and questions involved. Be prepared for the lender needing your income, debt, assets, social security number, and previous residence history. They will also need to know if you have any children or if you are married. You can start by providing this information verbally but you will also need to follow up and provide the right paperwork for these things.
Decide on a Loan
Once you start working with your lender and you have your profile, you – with the help of your lender – can decide on a loan type. You will need to be clear about what your objective is for owning a home and how long you plan on staying. Your lender can work with you to decide how much you should put down for a down payment and the type of loan you should get.
Start Looking for a new Home
This is the time to start looking for a home. Your lender has determined what you can afford and the type of loan you should get. They will be able to communicate this information to you and your agent, who will help you find a home that fits within those numbers.
Final Steps
Once you find the home you love you will write an offer that the seller will hopefully accept. If they do, you will be able to lock in the final rate of your mortgage. You will need to send a few more pieces of paperwork to your lender before you are able to finalize the mortgage.
When knowing what the mortgage application process entails, and then following the right steps, securing a mortgage that is right for you becomes a less daunting process. Remember to collect the necessary paperwork as soon as possible, stay organized and punctual throughout and communicate with your lender and agent as often as possible.