Mortgage Loan Process Tips and Checklist

Find helpful mortgage loan process information, resources and tips

mortgage loan process information

Understanding the mortgage loan process can make the home buying experience less daunting. There are contract terms to learn and different types of mortgages to choose from, but being equipped with the right resources and information can ease the application process. Get started with this basic mortgage information and checklist.

Determine if you’re ready to get a mortgage loan

Unlike renting, owning a home allows you to build equity. In addition to being a place to live, your house is an investment.

However, homeownership comes with more responsibility than renting, so make sure you answer these questions before applying for a mortgage:

If you answered yes to all of the above questions, then the next factor you need to consider is your credit score.

Know your credit score

Your credit score plays a major part in determining what interest rate you receive when getting a mortgage. The higher your credit score, the lower (and better) your interest rate will likely be. A lower interest rate means lower monthly payments so you can pay less on what you borrow.

Review your credit score with the three major credit bureaus (Equifax, TransUnion and Experian). Verify that your credit history is accurately reporting credit card and loan payments or other debt.

If your credit score is lower than you’d like it to be – and you have some time before you apply for a mortgage – you can try to improve it by paying down debt. If you haven’t built up much credit, consider getting a new credit card, making your payments on time and paying your balance in full.

Compare mortgage loan types

Compare the three types of mortgage loans to determine which one works for you:

Be sure to take your down payment amount, income level and long-term financial outlook into account.

Get pre-qualified for a mortgage loan

Did you know you can apply for a mortgage before you even have a house picked out? In fact, it’s a good idea to get your mortgage lined up so that sellers know you’re a serious buyer.

Getting pre-qualified for a loan also lets you know how much you can spend.

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