Before you head out to shop for a home, it’s a good idea to interview and meet with at least one mortgage professional to discuss your home buying budget and home purchase interests. From paperwork to costs to deadlines, we want to discuss what to know before applying for a home mortgage.
Be Prepared when Applying for a Mortgage
When you meet with a mortgage loan officer, they will discuss loan and interest rate options with you, review the paperwork you will need to provide to them, and consider the timeline for your home purchase.
The timeline will include steps like when paperwork is required to be provided to them, interest rate locks, and the timeframe for the loan to process for your home purchase closing. There will be several aspects of your home loan plan to make note of.
What Do I Need to Do Before Applying for a Mortgage?
While your loan officer will guide you and ask you to submit certain documents, it’s a good idea to understand what will be required in order to apply for a loan from the beginning. And, if you can, take the time and organize these records beforehand to get a jump on the process. It is going to take some time to gather.
Some records you will need when applying for a mortgage:
- Pay Stubs and Proof of Income Documents
- Tax returns from the last 2 years
- Bank Statements
- Valid Identification
- Gifted Deposit Proof Letters
- Debt Totals
If you can bring your pay stubs and bank statements to your first meeting, they can likely give you tips on what else will be necessary regarding your deposits, payments, and other financial commitments. If you carry a lot of debt, they might advise you to pay this down before moving forward.
What Information is Needed for Mortgage Pre-Approval?
Your mortgage pre-approval will be based on your income, budget, and debt load. Your loan officer will review it and give you an idea of what size loan you will qualify for and what the current interest rates are for your mortgage type.
If your credit score is low, they might suggest working to raise that so you can get a better interest rate or a different loan amount. Taking some time to increase this score can be highly beneficial to the interest rate on your loan.
How Soon Before Buying a House Should I Apply for a Mortgage?
Discuss your buying timeline with your mortgage expert. They will be able to tell you how long your pre-approval will be valid and when your loan timing will come together. You will likely be looking for a home while this loan process advances.
Working with an Experienced Memphis Area Real Estate Agent
When it’s time to sell your existing home or buy a great new place, turn to a highly regarded and well-informed local real estate agent. You want someone who you can trust to give you the best advice and know-how for your new home purchase or sale. Check out my other great real estate articles to help you through your home selling and buying experience here in Memphis. Staging homes for sale is also part of my expertise. Please ask me about it when you reach out.
Take a minute to learn more about me. With 20 years of top-notch service for my clients, I can guide you with your house sale, new home purchase, or buying a great parcel of land. As a top, licensed real estate agent in the Memphis area, showing you the best properties for you and your family is my goal!
Contact me at (901) 828-8919 or drop me a quick note at angie@angiekelley.com and we can speak in person about your plans and options.
