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.