Many people fear that applying for a mortgage loan or home loan is a grueling process—but while it does take a certain amount of preparation, it doesn’t have to be difficult. Learn how to get the right home loan for you with these simple preparation tips:
Organize Your Documents
Whether you’re a first-time homebuyer or choosing to refinance your home, the initial step in the home loan process is to organize all of your documents. This includes your W-2 forms for the past two years and one month’s worth of paystubs. You will also want to organize three months’ worth of bank statements for each bank, stock, or mutual fund in order to expedite the approval process. Additional documents to organize include copies of stock brokerage, IRA/401K accounts, and a divorce decree if applicable.
The next step in the home loan process is to get pre-qualified. This will help you determine how much house you can buy, gain a stronger negotiating position, and close the loan faster.
Research Loan Programs
Once you have been pre-qualified or pre-approved for a loan, it’s time to shop for loan programs and rates. This means that you’ll want to consider how long you plan to keep the loan and educate yourself on the relationship between rates and points. It is also a good idea to compare different loan programs to identify which interest rate is right for you.
Obtain Approval and Close the Loan
After you have compared programs, you can begin the loan approval process. This includes verification of your credit history, employment history, property value, and assets. Once the loan has been approved, you can close the deal and sign the final documents in front of a notary public.
Here at Absolute Mortgage, we are devoted to providing valuable professional advice and exceptional customer service to facilitate the mortgage loan process. Learn more about our services by visiting us online or calling our Bellevue office at (425) 822-7788.