How to Ensure You Get the Right Mortgage
Once you understand how mortgages work and the types of mortgages you can get, it’s time to decide what type of mortgage will work the best for your financial situation. Getting the right type of mortgage can help you pay less money each month, build equity faster or save money on interest over time, depending on your financial goals. Even if you are planning on selling the home in just a few years, the mortgage you choose today can have a lasting impact on your finances.
If you’re not sure which mortgage option is right for you or you’d like the unbiased opinion of one of our Network Partners about which mortgage will be best for you, call us today at 1-800-859-1259 to speak with a network partner for free. We can help you choose a mortgage that will support your financial goals.
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What You Will Need to Secure a Loan
The first step in securing a loan is to complete a loan application. To do so, you will need the following information:
- Pay stubs for the past 2-3 months
- W-2 forms for the past 2 years
- Information on long-term debts
- Recent bank statements
- Tax returns for the past 2 years
- Proof of any other income
- Address and description of the property you wish to buy
- Sales contract
During the application process, the lender will order a credit check on your credit reports, as well as a professional appraisal of the property you wish to purchase. The application process typically takes 1-6 weeks.
Choosing the Right Lender
You need to choose your lender carefully! You want to look for financial stability, as well as a reputation for customer satisfaction. Our Network Partners have been pre-screened and provide the highest levels of customer satisfaction. They also have a reputation for doing what it takes to get the deal done.
It is always desirable to choose a company that gives helpful advice and that makes you feel comfortable. A lender that has the authority to approve and process your loan locally is preferable, since it will be easier for you to monitor the status of your application and ask questions. Plus, it’s beneficial when the lender knows home values and conditions in the local area.
Prequalifying vs. Preapproval
Prequalification is an informal way to see how much you may be able to borrow. You can be ‘prequalified’ over the phone with no paperwork by telling a lender your income, your long-term debts, and how large a down payment you can afford. Without any obligation, this helps you arrive at a ballpark figure of the amount you may have available to spend on a house.
Preapproval is a lender’s actual commitment to lend to you. It involves assembling the financial records mentioned above without the property description and sales contract. Essentially, you are going through a preliminary approval process. Preapproval gives you a definite idea of what you can afford and shows sellers that you are serious about buying.
Choosing the Best Loan Program for You
Your personal financial situation will determine the best kind of loan for you. By asking yourself a few questions, you can help narrow your search among the many options available and discover which loan suits you best.
- Do you expect your finances to change over the next few years?
- Are you planning to live in this home for a long period of time?
- Are you comfortable with the idea of a changing mortgage payment amount?
Do you wish to be free of mortgage debt as your children approach college age or as you prepare for retirement?
Our Network Partners can help you use your answers to questions such as these to decide which loan best fits your needs. CALL TODAY for a FREE Consultation.