What are the steps in obtaining a mortgage?

We are seeing a mortgage advisor at the weekend and I am wondering what the steps are in obtaining a mortgage?





ThanksWhat are the steps in obtaining a mortgage?
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.





Make sure this mortgage broker or mortgage banker is able to do government loans such as FHA and VA loans if you qualify for one.





He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.





The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.





When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.





#1 One month of pay stubs for each person that will be on the mortgage.





#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.





#3 Two years of federal income tax along with the W-2 that match.





Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.





Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.





Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.





If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.





You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.





Make sure your mortgage broker explain all your options so you may make an intelligent decision.





What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.





So select the best option for you and your financial situation.





You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.





Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.





Your mortgage broker will now order an appraisal to show proof of the property value.





The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.





After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.





Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.





I hope this has been of some benefit to you, good luck





';FIGHT ON';What are the steps in obtaining a mortgage?
1. Save up cash for at least 20% down plus all closing costs plus 3 -6 months reserves. Anything less than this in these days of very tight credit is not really likely to fly, no matter how ';encouraging'; a prospective application-fee recipient may sound. There are a lot of people who are desperate for your application fees, referral fees and commissions these days, and will gladly take your application %26amp; fees knowing full well you haven't a prayer!





2. Check your credit reports. Score over 700 (for each person, if a couple or more than one owner). No new credit accounts or car loans in the past year. Low debt-to-income ratios! No collection accounts or accounts currently or recently in arrears.





3. At least 3 years track record on the job. Have good employment records %26amp; references ready to be submitted as soon as they are required.





4. Verify your budget! Make sure you can take on the expense of mortgage, property taxes, maintenance, and all that goes along with owning a home. Most apartment-dwellers have not the slightest conception of the costs and work involved in owning a house! Make sure you get the details and compare it to your budget!





5. Then see your banker who you have developed a banking relationship with over the years. They have all the data on your banking records. They know you (or should, if you have been managing your financial affairs properly over the last few years). They are more likely to be honest with you about the state of the lending climate, the local housing market and your chances of getting a mortgage.





6. Then - MAYBE - see a mortgage advisor or mortgage broker to see where you might get the best rate and terms on a mortgage.





You have an awful lot to do before you see that advisor. And it is entirely possible that you have seriously jumped the gun here and are nowhere near ready for an appointment with a mortgage advisor. If you have not completed steps 1 thru 4, and preferably (wisely) step 5 as well, you could be wasting a lot of time and money. As in your cold, hard cash wasted!





If you have among the few smart people who have completed the above #1-4, congrats! Glad there is still someone with more brains than bats in their heads. The mortgage advisor/broker will advise you on their particular application procedures, all the documentation you will have to gather to verify employment, get copies of the last 3 years of income tax returns, verify all financial accounts %26amp; balances, and list all of the fees you will have to pay, etc.
If you are in the UK make sure you are seeing an Independent Mortgage Adviser.


Take with you the following


a) proof of your earnings


b) details of any loans/credit cards etc you are paying


c) details of any adverse credit history


d) statutary proof of ID %26amp; residence


e) some lenders like to see bank statements.


Armed with the above the adviser should give you a very good indication as to how much you can borrow %26amp; from whom..


Next step will be to find a suitable property, which will need to be valued by the lender - fee paid by you.


Assume you have a reasonable deposit. The bigger your deposit, the better your interest rate will be.


Good luck - any problems feel free to contact.
The adviser will tell you everything you need. Generally, you need pay stubs from all your employers and your completed income tax return for the past two or three years. If they don't ask for that information and just ';take your word'; for the figures they ask for, then there is a very good chance that when it comes time to buy you will not qualify for all the amount they told you would be available.





I've dealt with lenders several times. Real Estate people want to ';pre-qualify'; you so they don't waste their time showing you homes that you cannot afford. Most of these kinds of qualifications are ';rough guesses'; at best since they don't really verify anything you tell them. Sometimes you overstate earnings and understate debt unintentionally.





My daughter sold her home. She made $50,000 PROFIT off the sale. Then she went to purchase a replacement home only to fined out that she could not get a mortgage because she had just started a new job. A lot of her annual income in the new job was in bonus money and commission on sales. Although she made $120,000 last year, she had not worked there long enough to get an ';average'; annual earnings estimate. Her base salary was not enough by itself for her to qualify for the mortgage.





So now she's in an apartment waiting until she has three years of income tax returns to show the lenders that she really does average $120,000/year every year.





Therefore, be careful when dealing with mortgage advisers. They tell you that you're all set and when it gets to the lender there are almost always hang ups that have to be corrected. Sometimes they tell you that you'll need to pay off several credit cards before they'll lend you money. I had to do that once and the balances I had to pay off were a total of about $4,500. So be sure you anticipate these kinds of situations.
The advisor will need proof of employment as well as your joint income. He/she will conduct a credit check and make a list of all your debts and assets. Once that information is thrown into the equation, he/she will advise you whether or not a lending institution will give you a mortgage, what interest rate you can expect to pay, and what houses are within your price range.
The free services available to through the mortgage officer of your bank can answer all your question or steer you to free answers.