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Getting a Mortgage In These 3 Easy Steps

Getting a mortgage may feel like an overwhelming task and responsibility, but if you research it a little bit so that you know what you are doing, you might feel a little more at ease about the process. If this is your first home purchase or if even if you are doing a mortgage refinance, you might be wondering what to even expect, and the process can easily be divided into three main steps. 


First, you should decide what sort of loans you will qualify for and then you will be able to select the one that best fits your needs. Talking to someone who knows what they are doing is very helpful in finding out what you qualify for, so you may want to talk to a mortgage officer. If your credit doesn’t look so great, there are bad credit mortgages which will have higher interest rates, but you might be able to qualify for them. When you are talking to a mortgage officer, you will want to ask him all of your questions to be sure you feel comfortable with what you are doing. You can ask how the rates work, about closing costs, for a Good Faith Estimate, and a Truth In Lending disclosure. All of these factors will probably just be estimates, not perfect figures, so keep that in mind, and also realize that in mortgage refinancing there will probably be less closing costs and other fees. 


Second, you will need to apply for the loan that you have decided will be the best for you. This doesn’t mean you will simply fill out an application and be done with it, but you will have to provide a lot of documentation, including proof of income, credit reports, and lists of your assets and debts. If you are refinancing, there might be some of the documentation that is different than if you are getting a first mortgage. 


Third, you will need to sign all the closing papers with the title company, and remember to bring your identification, such as a passport or driver’s license because you need identification with your picture on it. Make sure you have the closing money and the down payment if needed, and be sure they come from the account that you put on the loan application.  


When you understand these three easy steps and the process it takes to get a mortgage, the task might not seem as daunting as you originally thought. Take some time to research the process, talk to a professional, and ask a lot of questions so that you can feel comfortable making such a big decision.