Applying for your first mortgage can be both exciting and intimidating. We’ve compiled what you should know when preparing to apply for your first mortgage.
- Educate yourself – Don’t go into the application process blindly. You do not need to be an expert, but you should know a little bit about how mortgages work and what costs are involved.
- Start saving, making payments on time, and maintain steady employment – If you haven’t already, start saving, and don’t make any major changes to your income or employment. The more stable your income looks, the better.
- Find a loan professional – Shop around for a loan officer you trust and feel comfortable with. You can apply for a mortgage through your bank, credit union, or through a mortgage broker.
- Find the right loan for you – There are several mortgage options. Don’t simply think about the cost of your future home, there are also closing costs, various fees, and interest over the course of the loan.
- Know what to expect on the application – You will need to gather personal and financial information, including your employment history, proof of income, debt, and tax information. You may be asked to apply additional documents also.
- Ask questions and don’t panic – Ask as many questions as you want to help you understand the process.