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What Steps Are Involved in a Mortgage Application?

What Steps Are Involved in a Mortgage Application?

The mortgage application process sounds almost as fun as tax season. Unfortunately, you can’t skip through this part of the home buying adventure. It may be one of the most overwhelming and daunting tasks you undertake, but buying a home is full of uncertainty, stress, and endless questions. Knowing where to start is half the battle. It’s always exciting looking at possible dream homes, but the reality of home ownership always begins in the same place – with a mortgage application.

Steps in the Mortgage Process

  • Get prequalified.
  • Prequalification can help you get a realistic idea of whether now is the right time for you to buy a home. It’s possible you’ll discover you can’t realistically afford a new home, or that you need to save a little more money before you start the buying process. By getting prequalified first, you can avoid the heartache and waste of time of looking at homes that are out of your price range.

    Many homeowners realize they can’t afford what they want when PMI, insurance, association dues, and property taxes are added into the mix. Getting prequalified is the first step in getting a realistic assessment of your home buying situation. By getting prequalified, you’ll demonstrate to your realtor and to potential sellers that you are serious and able to afford the purchase.

  • Get organized.
  • The mortgage application process itself is one that demands a high attention to detail, serious organization skills, and a willingness to gather and provide a lot of financial information. You’ll be asked to disclose many tax documents, bank statements, birth certificates, proof of employment, and more. Knowing where all your information is located is essential for making your loan application process go smoothly.

  • Don’t make any big purchases during the mortgage application process.
  • Buying a new car or adding more debt to your credit won’t help in the application process. Lenders are looking for responsible homeowners, and purchasing with credit does nothing for your score during this time. Don’t open or close credit card account, don’t quit your job, and don’t make any other big life changes without consulting with your lender first.

  • Wait for that notice of approval.
  • As lenders go through your documents, verify your history, employment, and more, and determine which rate to assign you, all you can do is wait. It can be tough to wait patiently, because by this point you’ve already fallen in love with the house you want to buy and are practically picking out drapes and shower curtains. Unfortunately, waiting to hear you’ve been approved can feel like it’s an interminable process, and there’s nothing you can do to speed it up… so know, going in, that this patience test awaits you. Your mortgage lender is working as quickly as possible to process an enormous amount of information for your loan.

For a lender specialist with that added touch of personal service, contact us today, and we’ll make the mortgage application process seem less like tax season and more like smooth sailing.

Posted Apr 20, 2016 by Midland Mortgage Corporation