Applying for a mortgage goes a lot smoother when you have done a little homework first. None of this is complicated, and most of it you can do in an afternoon.
1. Check your credit
Pull your reports from all three bureaus and look for mistakes - an old balance that was paid off, an account that is not yours. Errors are more common than people think, and fixing one can move your score.
2. Know your budget, not just your approval
What a lender will approve and what you are comfortable paying each month are two different numbers. Work out the payment that fits your life, including taxes, insurance and the things you do not want to give up.
3. Gather your paperwork
- Your last two years of W-2s or tax returns
- Your most recent 30 days of pay stubs
- Two months of bank statements
- A photo ID
4. Hold off on big purchases
A new car or a new credit card between now and closing can change the numbers a lender approved. If it can wait, let it wait.
5. Talk to a broker first
As a broker, I can shop your loan with more than 180 lenders instead of one. A ten-minute conversation now can save you a lot of guesswork later - and it costs nothing to ask.