Page 7 - First Time Buyer's Guide

WHAT DO YOU

REALLY NEED

TO QUALIFY

FOR A LOAN?

Steps to Apply for a Mortgage Loan:

Step 1: Find out your current credit history and score
You don’t want any surprises! And it’s free!

Step 2: Evaluate Affordability
The two factors that dictate how much you can afford are

your potential monthly mortgage payments and the ratio
of debt you currently owe (credit cards + loans) versus your
monthly income.

Step 3: Gather all of your documentation

Income Verification (W-2 forms, tax returns, pay stubs),
Credit History and Assets (such as bank statements to
verify your savings).

Step 4: Interview Lenders to discuss options
Determine the type of loan you qualify for as well as the
amount and down payment required. Rates and fees are
very competitive between lenders, so shop around! It won’t
hurt your credit score.

Step 5: Get a pre-approval letter
Complete a loan application with one or more lenders to get
pre-approved. The letter provides an estimate of what you
might be able to borrow and demonstrates to home sellers
that you are a serious buyer.

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