Tags: Home Loans, Kansas City Missouri, Mortgage, Real Estate
What are my first Steps in getting a home mortgage? Below are some tips!
When you buy a home, you will most likely need to get a mortgage loan. You’ll need to do your research to prepare for the road ahead of you.
Here are some steps you can take:
- Learn the language used in all your mortgage loan documents.
- Gather personal financial documents in advance and be prepared to provide a lot of personal and financial information. Your information is secure when talking to a loan officer and/or a real estate agent.
- Use your Realtor to give you some references into which lender they have had a good experience with.
- Know your Credit score! Or at least have a idea. If you have a problem be upfront about it so the lender and te Real Estate agent know what direction to point you in.
The first step is to understand some basic terms – otherwise it is a bit like trying to order dinner in a foreign country when you don’t speak the language. Some of the terms you’ll encounter are:
- ARM (Adjustable Rate Mortgage)
- FRM (Fixed Rate Mortgage)
- PITI (Principal, Interest, Taxes, and Insurance)
Next, you should know that the lender will need a lot of information and paperwork to consider your loan request. You will need to prove everything in your application with documentation.
You will have to make several big decisions. One is whether to use a mortgage broker. If you choose to hire one, you’ll need to know what to look for, and what to avoid.
Understand your credit score
Since you will be able to get a loan only if you are creditworthy, you need to understand your credit report and know how to improve your score if needed. Keeping a good credit history is vital for getting a good loan. There are ways to improve your credit score and it is a good idea to do that well before you apply for a loan.
If this is your first time buying a home, you will have new monthly expenses. As long as you know what these are, you can prepare.
It is important that you have a good working understanding of the common loan programs available, along with their moving parts. Don’t count on your loan officer to completely educate you.