Financing

What to Do Before Applying for a Mortgage

A few simple steps before you apply can make the mortgage process smoother and help you understand your options.

Before you start touring homes, it's worth taking a little time to prepare for the mortgage application process. While every lender and every borrower's situation is different, there are a few general steps that tend to help.

Review your credit report

Many buyers request a copy of their credit report before applying so there are no surprises. If you notice anything that looks incorrect, you can look into how to dispute it directly with the credit bureaus.

Gather your documentation

Lenders typically ask for recent pay stubs, tax returns, bank statements, and identification. Having these ready ahead of time can help the process move more smoothly once you're ready to apply.

Think about your budget, not just your approval amount

A lender can tell you how much you're approved to borrow, but that number isn't always the same as what feels comfortable for your monthly budget. It's worth thinking through your full financial picture, not just the maximum loan amount.

Talk to more than one lender

Comparing loan programs, rates, and closing costs from a couple of different lenders can help you understand your options. Faith is happy to share names of lenders she's worked with, but you're always welcome to work with any lender you choose.

Ask questions early

If anything about the process feels unclear, ask before you're under a contract deadline. A good lender should be willing to explain things in plain language.

A note on this article: This content is educational and general in nature. It is not legal, tax, lending, or financial advice, and it is not a substitute for guidance from a qualified attorney, lender, accountant, or other licensed professional. Market conditions and processes can vary; please reach out to Faith with questions specific to your situation.

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