Buying your first home is the most exciting, and terrifying, time of your life. It’s exhausting and thrilling. When it comes to applying for your first mortgage, you likely have a lot of questions. You may not even know how to prepare for it. Here are three ways you can prepare for applying for your first mortgage.
1. Put Together List of Banks
While you may find it more convenient to get a mortgage through the bank that you normally use, you may find that sometimes they don’t offer the best rate. It’s worth researching different lenders to determine who you want to apply for first. Depending on your credit score and the amount of money you can use as a downpayment, it may impact which banks approve you and which don’t. Many times a Mortgage Broker can offer a more competitive interest rate.
There are a few regional credit unions that are a bit more open to homeowners with low credit scores. Taking the time to put together a list of banks, mortgage lenders, and credit unions you want to apply to can save you time later.
2. Gather Paperwork
When you’re applying for a mortgage, the bank is going to want a lot of income paperwork. They need to know that your income can cover your expenses and the mortgage. If your spouse works, then they’ll likely want their income, too. You can save time by having that paperwork ready to go.
At the very least, you’ll want bank statements that show your income. You may need to show them a few years’ worth of income statements. Other banks may want to know how much you have in your savings, too.
3. Ask a Professional
Sometimes the best, and easiest, way to find answers about applying for a mortgage is to ask someone that deals with them frequently. As a RE/MAX Realtor, and one of the best realtors in Bucks County, PA, I can be a resource to help you with your mortgage and house buying process.
Start Applying Today
Part of the home buying process is finding a bank that’s willing to give you a mortgage. It can determine what homes are in your budget. To ensure you’re properly prepared, you should give me a call at RE/MAX Centre today!