A mortgage loan is one of the best options when planning to buy a house or moving to a new one. But, the process of applying for it can be difficult and intimidating, especially for those who are new to it.
To make the process much easier, here are some mortgage application tips you can follow:
Get a Credit report
Your credit score is the first thing that lenders look at when you apply for home loans. So, make sure to get accurate credit reports from each of the three major credit bureaus and assess them thoroughly. Incorrect information or any errors can lead to higher rates or even hinder you entirely from applying for a loan.
Once you get your reports, examine them, and see if you qualify for a loan. Most lenders require a credit score of at least 680 (620 for Federal Housing Administration or FHA loans) for someone to qualify. If it falls below that, lenders can deny the application. So, it's important to ensure you have a high credit score before getting a loan. Missed payments, frequent lateness, and other negative credit information will also reflect on your credit report and prevent your application from getting approved.
Prepare All the Paperwork
Applying for a mortgage loan has many requirements when it comes to paperwork. You'll need a full picture of your financial standing, so gather copies of your income, assets, pay stubs, tax returns, bank statements, and so on. You'll also have to prove your identity, so make sure that you have an updated and government-approved ID, like a passport or a driver's license.
If you're self-employed, you'll also need to provide documentation that includes two years' worth of tax returns. The most recent statement of your profit and loss that shows the revenues, expenses, and costs during the fiscal year may also be required by the lender.
A Bank That Offers a Seamless Application Process
A mortgage application is a long process that takes a lot of work. But, by following these tips and opting for a trusted and quality bank, you'll have your mortgage loan application easily approved. To learn more about our offers, get in touch with Table Rock Community Bank, Member FDIC. Equal Housing Lender. We have conventional, Veterans Affairs, FHA, and United States Department of Agriculture loans for you to choose from.