The complex process of getting a mortgage is made clearer by breaking it down into steps. Here’s a checklist to help do just that.
- Determine your mortgage limit
- List all expenses in your current budget
- Estimate potential homeowner expenses and include them in your snapshot
- Estimate your monthly payments using an online calculator
- Calculate your debt-to-income ratio to determine your mortgage limit
- Decide how you will make a down payment and how much
- Paycheck stubs for the last 30 days
- One W-2 tax return if you’ve had your job for over two years, or two if otherwise
- Recent credit card statements
- Two bank statements over last 90 days
- Proof of pensions, retirement, disability, or Social Security
- Proof of income from rentals, investments, etc.
- Proof of child support or alimony paid/received
- Loan information on current home (if you own one)
- 401K statements
- Divorce decree (if applicable)
- Check your credit
- Determine the type of loan that is best for you.
- Choose a lender, or several.
- Get pre-approved.
You’ll need the following information when applying:
- Get a Good Faith Estimate of fees as a part of your pre-approval.
- Lock in your rates.
- Bring all documentation to the closing.