By Sarah Colvin
Applying for a mortgage can be intimidating, especially if you’re a first-time homebuyer. With all the paperwork, terms and processes involved, it’s easy to feel overwhelmed. However, it doesn’t have to be this way. With the right approach, comprised of these five steps, applying for a mortgage can be simple and might even save you money.
1. GET A MORTGAGE PRE-QUALIFICATION
Mortgage loan pre-qualification gives you a better understanding of how much you can borrow, which helps narrow down your home search to properties within your budget. It also shows sellers that you’re serious, which can give you an edge in competitive markets.
2. GET DOCUMENTS & DETAILS READY
A smooth mortgage application starts with determining available cash on hand to make a down payment and having your financial documents ready. Lenders will request various documents to verify your income, assets and creditworthiness. The faster you can provide these documents, the quicker your loan will be processed.
These documents include:
- Two years of tax returns
- Two months of bank statements
- Recent pay stubs or proof of income
- Information on any debts or loans
- Proof of assets
By organizing these documents ahead of time, you’ll save yourself back-and-forth communication with the lender, making the process much faster.
3. CHOOSE THE RIGHT LENDING PARTNER
Working with a trusted lender is essential for a homebuyer for several reasons:
- Competitive rates and terms
- Streamlined process
- Transparency
- Personalized guidance
- Faster closing
- Clear communication
- Reputation and trust
4. APPLY FOR A MORTGAGE LOAN ONLINE
Thanks to technology, applying for a mortgage doesn’t have to mean endless paperwork or in-person meetings. You can apply for a loan online from the comfort of your home with:
- Incentives
- Convenience
- Ease
- Speed
5. CHOOSE THE RIGHT MORTGAGE
Understanding the various types of mortgage loans available can help you choose the one that suits your financial situation best. Some loans may have easier requirements or quicker approval times based on your financial profile. Types of mortgages to consider include:
- Conventional loans
- FHA loans
- VA loans
- USDA loans
Applying for a mortgage doesn’t have to be daunting. By following these five simple steps, you can streamline the process, making it easier to get the keys to your dream home.
Sarah Colvin is senior manager – Mortgage Direct with Hancock Whitney. Reach her at sarah.colvin@hancockwhitney.com.