A Step-by-Step Guide to Getting Your Mortgage

Being familiar with the steps that you should take to prepare for the mortgage approval process will allow you to have the best loan option. You will also be able to better negotiate the purchase of a home as a preapproved buyer.

1. To get your credit mortgage ready, check your credit history and your credit score. The higher your credit score, the better loan terms you can get. FHA loans require a minimum credit score of 580. Conventional loans can be processed with a minimum score of 620. If you need to get your score up, work on paying down credit balances.

2. Before meeting with a lender, prepare a budget that includes a mortgage payment that you can comfortably afford. This will be easier once you figure your debt-to-income ratio, which ideally should be 43% or less.

3. Your partnering lender will help you get preapproved for a loan. The lender will review and verify all of the financial information and documents that you provide.

4. Once your creditworthiness has been determined by your lender and your loan options presented, you can choose which kind of mortgage works best for you. Conventional loans, FHA loans and VA loans will likely be what are available to you.

5. Once you are preapproved and you have an accepted offer on a home, it is time to apply for a loan for your purchase. The lender should have most of the documents needed for final approval. An appraisal verifying the purchase price will be part of the final approval.

6. The closing process now begins. The average time to finalize your loan and close on your home is 45 days.

Knowing these steps will make your loan process much easier. Please call me for an appointment so we can begin.