Following these steps and your application will be approved in no time!
Getting a mortgage might seem daunting, but it’s important to understand the process if you are considering buying a home. Follow these 5 easy steps to get a the best mortgage you can.
- Get your documents in order. A lender will ask for lots of information including tax returns, your credit score, bank statements, and any debt payments you may have. If you have them ready and know what your financial situation looks like, you will be better prepared when you meet with a lender.
- Get pre-qualified. Not everyone will qualify for a mortgage, so you need to need to figure out if you can get a home loan. A lender will look at your assets, income, and liabilities. With this information, the lender will be able to give you an idea of if you qualify for a mortgage and how much money you can borrow. Based on that information, you can decide what kind of home you can afford. Nothing with the lender is set in stone or confirmed, but it will be useful information to have for the next steps.
- Talk to lenders. Banks and brokers offer different mortgage rates and terms, so make sure you know what is available to you before you settle on a lender. A mortgage broker can help you look at lenders and shop around on the market, which might help if you have a low credit score. But, brokers usually have a fee attached to their service. Banks are a common source of loans, but also might have different terms of lending.
- Get pre-approval. During this more formal step, a lender will look at your credit score, verify your employment information and finances, and see if you will actually qualify for a mortgage. The pre-approval is important because it shows a seller that you can actually buy the house when you make an offer.
- Choose a lender. Lenders often have different terms for their loans, so make sure you are comparing them side-by-side. Ask your real estate agent if they have any recommendations for lenders.
Knowing the steps of getting a mortgage before you start looking for a house can help you be prepared and get the home of your dreams. When you are ready to start shopping, Clagett Realty will be ready for you!
Buying a Home with Clagett Enterprises
At Clagett Enterprises, we have extensive experience serving the greater Frederick area and Western Maryland, since 1987. Our team is a full-service real estate company that’s ready to help you with your real estate and residential sales needs. Speak with a Clagett professional at 301-665-6009, or request a proposal for preventive maintenance here.