How Do I get a Mortgage? Everything you need to know to obtain the mortgage you want.

 

How Do I Get a Mortgage?

So you want to buy a house? Unless you have the money to buy the house outright you are going to need to get a mortgage. Today there are many different types of loans, and loan programs. There are also a multitude of mortgage bankers, brokers, and lenders.

Before you apply for a mortgage there are a few easy steps you should follow.

Determine how much mortgage you can afford. You don’t want a house you can’t pay for, which means you don’t want a mortgage that doesn’t fit into your current budget. The first thing you should do is look at your income and expenses. Figure out how much you can comfortably pay each month. Remember, you won’t just be paying the mortgage—you will also have to pay insurance, taxes and any other costs.

 

Getting the perfect loan. When shopping for a loan you can go to a direct lender, such as a mortgage bank, or you can go to a mortgage broker. Banks lend you the money directly while mortgage brokers can shop around to find the best deal for you. When calculating the cost of the loan make sure you factor in broker fees, application fees, credit report fees, appraisals, the term of the loan and more.

Apply for a loan. Be ready with information about your income, your job, your assets and your liabilities. Have your bank account statements, paycheck stubs, tax returns, rental agreements and any investment earning reports ready. Before you fill out the loan application make sure you know what is on your credit report and your Fico score because your lender will certainly look at both of these things.