We are here to help you debunk the myth that your mortgage application has to be a tedious, time-consuming, or an uphill slog.
Our mortgage professionals have shown their clients that obtaining a mortgage is easier than it looks. This is especially true when you’re prepared and know-how (and when) to kick-start the process.
So with a little guidance, it’s possible to have a lot—if not all—of the pressure taken off your shoulders.
First thing’s first: Don’t fear the application. Here are some tips for a smooth and easy application process.
Laying The Foundation For A Hassle-Free Mortgage Application Process
If you know a home purchase is on the horizon, start readying yourself and your credit early. Here are 3 simple steps.
- Begin by pulling your credit report (you can obtain one of these free every year), and tend to any issues.
- Gather the essential paperwork. In addition to your credit report, there are a handful of other standard bits of info you’ll want to have ready.
They fall under a couple of different categories:
- Income Verification. This can mean a lot of things. What’s typically asked for are your W-2s, pay stubs, income tax returns, alimony or child support statements, etc.
- Assets and Debts. Naturally, we’ll want to be aware of what your current assets, income, and debts are to get a clear view of your income-to-debt ratio (more on this in a moment).
This includes gathering bank statements, retirement and investment account info, and if you’re using gift funds, a “gift letter”. The gift letter is to show who the gift is from, your relationship, and that the gift is truly a gift and not a loan.
- Set Yourself Up For Success. Avoid opening any new accounts or making big purchases right before you apply. Also, if you have a low credit score, do your best to start paying down credit card debts and loans to reach lower balances. Doing so will help improve not just your credit, but your income-to-debt ratio as well.
Although there are the rules mentioned above, using down payment gift money is pretty straightforward. Follow these guidelines and let your lender know upfront that gift money is part of your down payment game plan. Then both sides will be fully aware of how much can be used for your down payment, and whether you’ll need to use any funds of your own.
The Golden Rule for Ideal Income-to-Debt Ratio
Generally, a good rule of thumb is “the 28/36 rule,” which says your total monthly mortgage payment shouldn’t exceed 28 percent of your income, while your total debts shouldn’t exceed 36 percent. Keep this in mind as you apply for a mortgage and scout out homes.
We Have 3 Ways to Make Your Mortgage Application Process A Breeze, Once You’re Ready To Apply
When it comes to making your life easier during the mortgage application process, we’ve got you covered in several ways, depending on your needs and level of comfort with filing your application.
- Online, From the Comfort of Your Home. Kicked back with a keyboard in hand, even in your pajamas if you wanted, your Loan Advisor can send you an application link that you can complete without ever having to walk out your door.
- Online, With Your Own Mortgage ‘Co-Pilot’. Still applying from the comfort of your couch or home office, our online tech allows Loan Advisors to hop on the application with you. As your personal guide through the process, they can help answer any questions you have, and give you peace of mind that all your bases are covered!
- In-Office, With Your Favorite Loan Advisor. You can stop by any of our locations to get the same guidance as online, to have someone walk you through the application process and answer any questions you may have.
We offer a wide array of programs and office locations, and our mortgage professionals are always available to help you make informed, confident decisions about purchasing your home!
What To Expect After Your Application Is Accepted
After your application is accepted, we keep you in-the-loop during the entire process. You’ll receive milestone notifications to let you know where your loan is throughout in the process.
Also, keep in mind that you might be contacted for additional documentation, depending on the type of mortgage loan selected.
This is standard, so no need to worry if you get asked for anything extra. Your Loan Advisor is just making sure they have everything needed.
Lastly, once the application process starts, make sure you don’t change anything until your loan closes.
Ready To Turn The Key On Your New Home? Get Started With Your Application Today!
With purchasing a home still being one of the best ways to build wealth today, and for future generations, we’re thrilled to be a part of your journey toward making homeownership a reality!
Once you’re ready to apply for a mortgage, work with your personal Loan Advisor to find the best loan. We offer a wide variety of programs and rates, and we’ll work together and find the right deal for your finances.