Apply for a mortgage

A borrower can apply for a mortgage online, or by speaking with a mortgage professional on the phone, or by stopping in to sit down with a mortgage professional. You will need to complete a 1003 (loan appliation), provide income documentation, submit to a credit check, and usually have an appraisal done by a licensed appraiser. Contact a mortgage broker to see what programs you qualify for and to apply for a mortgage today.

During the loan application process, there are several key questions that you should be ready to ask your broker or lender to ensure yourself of finding the best overall mortgage loan. For example, What are my closing costs, and will you provide a good faith estimate of these up front? Mortgages come with fees for various services provided by lenders and other parties involved in the transaction. You want to know what those fees will be as early as possible.

Another question you should consider asking is, when can I lock in the interest rate and will it cost me to do so? Your interest rate may fluctuate between the time you apply and closing. To prevent it from going up, you may want to lock in the rate for a specified period.

When should you apply for a mortgage loan when you are looking for a new house? You should apply for a mortgage loan before you even start looking for a new home. Generally your realtor will require a pre-approval letter from your mortgage professional before they will show you homes and definitely before they will allow you to place a bid on a home. Also, getting approved for a mortgage before looking for a home will let you know how much home you can afford and if there are any problems that need to be taken care of ahead of time (such as credit problems, income documentation problems, etc...). Therefore you should always get approved before you start house hunting.

The amount of information requested during the mortgage application process can may seem overwhelming and possibly even invasive. Please be aware, however, that mortgage professionals are required by law to safeguard all of your personal and financial information.

Don't forget to ask what will be the minimum down payment required for your loan. The rate and terms of your loan will be based on a down payment figure, typically 5 to 20 percent of the purchase price. If you can put more money down, you may be able to lower your rate and improve your terms. If you come up short on your down payment, you may be required to purchase private mortgage insurance(PMI).

When you apply for a home mortgage you must consider your credit cards closed for a period of around 30 days. It is important you don't change anything. Do not run up your credit card bills because if you do then it may affect your loan. As your balances increase your financial position changes. It is important to keep your financial position constant throughout the loan process.

» DISCLAIMER: The information contained in this article on 'Apply for a mortgage' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.