-How To Get That Mortgage For Your Dream Home

If you're planning to purchase your first home, you'll need to qualify for a home mortgage. To learn more about the mortgage application process along with tips you can use to improve your chances of obtaining a mortgage, keep reading.

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Mortgage Application Process

The mortgage application process starts with the application form. With your loan officer, you'll work through the application, answer questions about yourself, your family, your employment history, the house you intend to purchase, your savings and more.

Then, your lender will ask for your documentation regarding your income and family finances. You'll need to submit proof of income, monthly expenses, perhaps bank statements, and a statement of existing debt. If the bulk of your down payment is coming from a family member, you may need a letter stating that the money is a gift and not a secondary loan.

Next, your mortgage lender will look at your credit rating and credit profile. They'll see how well you pay your bills, your ability to carry credit and, of course, your actual credit score.

Finally, the mortgage lender will then either approve or deny your application. That is the tense moment.

Tips On Preparing for the Mortgage Process

First, start by getting all your finances and documentation in order. Prepare a small file folder with copies of all the documentation you think you'll need to submit. Being prepared not only makes a great impression on your loan officer, but it also helps you organize yourself as you prepare for home ownership.

Next, check your own credit report and make sure it's accurate and up-to-date. Because so much of a lender's decision is based on your credit rating, one incorrect black mark or case of mistaken identity could destroy your dreams of home ownership or at least cost you a higher interest rate on the loan.

If your credit is less than ideal and it's not a mistake, you may want to take a year or two to improve your rating. Focus on paying your bills on time, reducing your debt load and getting that score high enough to not only qualify for a home mortgage loan, but even one with a low, advertised interest rate.

Finally, if you're unsure about your ability to acquire a mortgage or need a non-conforming loan because you're a freelance worker, contract employee, or are self-employed, try consulting a mortgage broker. Because their business is all about mortgages, they're often able to find loans that work with you and your financial lifestyle.