Are you looking to purchase a home for the first time? If you’re like most first-time homebuyers, you’ll probably need a mortgage if you want to get into a property. However, this process can be confusing, especially if you’ve never had to apply for a mortgage before. As a mortgage expert, I help tons of first-time homebuyers get approved for mortgages every year. That’s why today, I’m sharing three simple steps you can take to get into the home of your dreams:
1. Get pre-approved by a lender. Getting approved for a home loan is how your lender checks that you can afford the cost of your mortgage. Lenders do this by thoroughly examining your financial information, like your credit history, monthly income, and day payment. Pre-qualification is a less extensive review of your finances, but I recommend you take the extra step and seek pre-approval. Being pre-approved means you can close faster once you find a home you like, and sellers tend to prefer pre-approved buyers since they are more reliable.
2. Complete your application. After being pre-approved, it’s time to hit the open market and find a great home—this is the fun part! Once you find your home, it’s time to complete your mortgage application. While being pre-approved means your lender is theoretically already willing to lend you the money, this is the point where you make it official. Send your financial information over again to make sure your lender has the latest information and you’re well on your way.
3. Secure final approval from the underwriter. This is the final step before you can get into your new home. This is an extremely thorough review of all your latest financial information and documentation. It will take less time if you’ve been pre-approved, so make sure you don’t skip that step! Generally, the more complicated your application is, the longer it will take, but be patient. Once your loan is underwritten, you’re finally ready to close on your new home.
Hopefully, you found this information insightful. There are a lot of requirements that go into being pre-approved for a home loan, so if you have any questions about them, please call or email me. I am always willing to help!