As the first stop on the way to homeownership, the mortgage lending process can be a “hurry up and wait” sort of ordeal. There are certain matters that require your urgent attention, and while you wait for those to be filed away, there is nothing you can do in the meantime. Know what to expect and how to prepare yourself for this process — and get it sped up as best as you can.
Your History Matters
A good credit score and steady past of bills that are paid on time are critical to qualifying for a mortgage. Banks like to see that you have money and can afford to pay them back. What kind of loan you qualify for (whether that’s a substandard loan or an FHA loan) will also dictate how much of a mortgage payment you can afford.
- If you know you’ve got some credit cleanup to do, start as soon as possible to avoid wasting anybody’s time. The process can be lengthy, yes, but be ahead of the game!
Your Credit Score Likely Will Be “Softly Pulled”
What does this mean? Well, it means that your lender (or lenders, if you go to many of them) will be checking your credit. If you subscribe to a credit monitoring service you will likely be notified, but beyond that, your credit will probably not be affected. If it takes a hit, however, it will not be a large hit; creditors will see that you are purchasing a home.
Be Prepared for a Lot of Questions
The bank wants to know you really well, so you will be asked for a number of personal pieces of information — your social security number, for example. You will also be asked to provide documentation like your last 60 days of banking history and paychecks.
The stress of the home buying process is worth it when you unlock the front door to your new home for the first time. Homeownership is the American dream, so know how to make that dream come true.