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Starting the Loan Process

If you are planning on getting a mortgage, it is a good idea to start getting your paperwork together early, so that you are prepared when you find the perfect property and you want to write an offer.

  • Talk to several mortgage brokers ahead of time, before you start shopping. This will ensure that you are looking in the correct price range and only at properties that you will be qualified to purchase.
  • Get your documents together in a file. Banks require a lot of documentation in the mortgage process: financial statements, bank statements, tax returns, recent pay stubs, etc. Get a list of the required documents from your lender and start putting your file together early. It saves a lot of stress in the long run.
  • Submit your application. You don’t need to have identified a property in order to apply for a mortgage. The application is just the first step. In fact, many sellers will want to see a “pre-approval” letter from a lender in order to make sure you are qualified to make the purchase, so this is an excellent way to get the ball rolling.
  • Check your credit rating and be smart with your finances! Your credit score will have a huge impact on what type of property you can buy, and at what price. A lender will be able to tell you your credit rating and let you know what that means for you in terms of interest rates, etc. Also, now is not a good time to make sudden career changes or large purchases. Once you are under contract on a property, you will want to remain in a stable financial position all the way through closing. Large purchases and job changes can derail the ability to get financing.