Most future homeowners will need a loan in order to buy their house. But what’s the mortgage application process and how does it work? Well, I’m about to share that with you!
Before Applying for A Mortgage Application
Before even looking at houses in Seguin, you need to determine your budget. This will usually determine the location and square footage of your future property. You’ll need to pull out your monthly debts and annual income in order to calculate this.
If you’re already set on a location or home in Seguin, then utilize a monthly mortgage payment calculator to gauge whether the house is in your price range.
While Applying for A Mortgage
Now that you have a budget, it’s time to apply for the mortgage application! Thanks to technological advances, you’re able to complete the majority of all applications online and/or talking to your lender via phone calls the old-fashioned way.
When applying you’ll need to supply documents that show proof of income like past tax returns, W-2s, pay stubs, recent bank and savings account statements. This will show the lender how much you can afford for your monthly mortgage payment.
After Applying for A Mortgage
After applying during the mortgage application process, your lender will assess the information you gave and give you potential loan options. The options can be overwhelming due to the high quantity, but remember to also look at the eligibility and down payment requirements for each loan. If you’re stuck between a few options, ask your lender to run different scenarios so you can see the monthly payment, total interest costs, and more. This will help you with reaching your short and long-term financial needs.
Now that you have chosen a loan, it’s important to lock your rate in as they change daily. Right now, mortgage rates are at historic lows. You can do this once you have an offer and contract.
While waiting for your approval, make sure your finances stay around the same number before applying. If there are significant purchases, more debt, or any other big detail changes, your approval might change with it.
To be the most prepared homeowner in Seguin, don’t be afraid to ask your lender questions! It’s their goal to help you get the home of your dreams, so take advantage of their knowledge. Ask them questions about how much money you’ll need, any services you can benefit from, and what assistance programs you qualify for.
If you’re ready for the home buying process in Seguin, contact me today! Even if you’re not prepared, reach out, and I can help. Email me at krista@bloomrealtytx.com or call me at (830) 305-5248!
