How To Get A Mortgage

Steps to getting a mortgage:

1. Get pre-approved
2. Find a property
3. Complete your loan application
4. Complete loan processing
5. Go through the underwriting process
6. Close on the property

How To Get A Mortgage

Income and Job History

To verify your income, we will look at your employment history, your monthly income, and any other forms of money you have coming in.

Credit Score

The minimum credit score for a conventional loan is 620. For FHA and VA, loans you’ll need a minimum 500 credit score. For USDA loans, you’ll need a minimum credit score of 580.

Debt-To-Income Ratio (DTI)

Similarly to credit score and income, your debt-to-income ratio is an important indicator used to determine if you have the cash flow to qualify for a mortgage. Your DTI is calculated by taking the total of all your minimum monthly debt payments and dividing it by your gross monthly income.

Proof of Income

We require at least a 2-year employment history. Whether you work for a company or are self-employed, we asked that you provide proof of income such as 2-years tax returns, most recent W-2, 30-day paystubs, 12 months bank statements, 1099 forms, etc. If you have other sources of income, (e.g., social security, disability, alimony, child support, etc.), we will need legal documentation that confirms you’ll continue to receive the income.

Proof of Liabilities

When it comes to liabilities, we ask about any credit cards, auto loans, personal loans, or student loans. If you have any of these types of debts, we need to know what the minimum monthly payment is. If you have any student loans, we need to know the total balance owed.

Apply for mortgage pre-approval

Being pre-approved is important because you’ll learn how much house you can afford. This will prepare you for when you are house hunting and can show the seller and real estate agent that you have financing to move forward. A pre-approval only takes around 5-10 minutes.

Find a property and make an offer

To help you with your search, try connecting with a real estate agent or simply browse online and attend open houses. Once the seller accepts your offer, it’s time to move to the final stages of the home buying process.

Closing

Once your loan is approved, it’s time to attend the closing meeting! At closing, you are given a chance to ask any last-minute questions you may have about your loan. Once you sign, you are officially a homeowner.

If you’re looking to get a home loan, apply for a mortgage today with Mortgage-World.com.

Written by: Julia Luis, Loan Officer for Mortgage-World.com, LLC

Julia Luis covers mortgages and the housing market. Before joining Mortgage-World.com, she was a student at the University of Miami.