Getting Started

Preparing your finances before applying for a mortgage can help make the home buying process smoother and improve your financing options. A little preparation now can save time and reduce stress later.

• Gather Your Financial Documents
  Organize important documents such as recent pay stubs, W-2s or tax returns, bank statements, investment account information, and records of outstanding loans or debts. Your lender will use these documents to verify your financial qualifications.
• Review Your Credit
  Your credit history plays an important role in the mortgage approval process. Review your credit report for accuracy and speak with your lender about any steps that may strengthen your financial profile before applying.
• Build Your Savings
  Plan ahead for your down payment, closing costs, appraisal, inspections, moving expenses, and any immediate costs associated with your new home. Your lender can help estimate these expenses based on your loan program.
• Reduce Existing Debt
  Keeping credit card balances low and paying down high-interest debt can improve your debt-to-income ratio, which may increase your borrowing power and financing options. Your lender can help you with the best strategy for your particular situation.
• Maintain Financial Stability
  Once you begin the mortgage process, avoid making major financial changes unless you first discuss them with your lender. Changing jobs, opening new credit accounts, financing a vehicle, or making large purchases can impact your loan approval.

Before You Apply

One of the best things you can do before beginning your home search is to meet with a trusted lender. They can review your financial situation, explain your loan options, answer your questions, and help you determine a comfortable price range before you start shopping for a home.