Title:
First Time Buyers
Mortgage Application Checklist
Word Count:
635
Summary:
If you have a
dream about owning your own home and applying for a mortgage then you may be a
bit nervous at the present moment. While having your own home is the American
dream, the high prices involved can be overwhelming.
Keywords:
mortgages, first,
time, buyer, home, dream, apply, applicant, american, afford, broker, direct
Article Body:
If you have a
dream about owning your own home and applying for a mortgage then you may be a
bit nervous at the present moment. While having your own home is the American
dream the high prices involved can be overwhelming. In addition to this, many
lenders will be more concerned with earning a profit than with helping you find
a home that matches your income. Below are some steps you can take to properly
apply for your first mortgage.
Applying for a mortgage used to be simple. People would compare the prices and
rates on houses they wanted, and once the found a lender they were comfortable
with, they would make a large down payment and then move in. Today things have
changed, and going through the number of options available can be very
stressful. One thing you should do before shopping for a house is to educate
yourself.
First Mortgage Application Steps
The first thing you will want to do is look at your current income. How much do
you make per year? How secure is your job? Remember, if you go about getting a
mortgage the traditional way, it could take 15 to 30 years to pay it off, and
if you get behind on your payments, you could lose your home and have your
credit ruined. If you can't afford a home, it is best not to move into one
until you can. This will keep you from taking on debt you can't afford.
How Much Can You Afford?
If you feel that you can afford a mortgage the next thing you should decide is
how much you can afford. Lenders have a tendency to offer you mortgages which
are more than you can afford, and this is important to remember. In addition to
the cost of the mortgage itself, you will have to pay taxes, insurance and
other expenses as well. These costs should be included in your monthly
expenses.
Apply Directly Or Via A Broker?
When you begin looking for a mortgage you will encounter two types of lenders;
mortgage brokers and direct lenders. The direct lenders are the people who have
the money to lend you. They are ultimately the individuals who decide if you
will be approved for a home. The mortgage broker acts as a middleman, going out
and finding direct lenders who can give you the best deal.
While the lenders may have a limited number of loans available, a mortgage
broker will often have access to multiple lenders simultaneously. If you are
looking for a specific type of mortgage, a mortgage broker may be better to use
than a direct lender. However, a mortgage broker will charge you for their
services, and this could be a certain percentage of the mortgage loan you end
up with. With the rise of the internet, online mortgage brokers can help you
save money.
Get The Paper Work In Order
Once you have found a loan through a direct lender or mortgage broker the next
step is to fill out an application. There are a number of things you will need
to fill out on the application and it will help if you have some supporting
documents. You will need to provide information about your income, length of
employment, and your assets. They will also want to know what other loans or
credit cards you have.
Once this information has been provided, the lender will look at your credit
report. In addition to this, they will want to see your bank statements and
check stubs from your job. You may also need to show them tax information and
data about your insurance. If your credit is good, an appraiser will be hired
to make sure the house is valued at the loan amount that will be given to you.