The 5 Easy Steps of the Mortgage Process - Step One

Purchasing a home can be exciting as well as frightening. Below are the steps it takes to find and get a mortgage. Step by step, we can walk it together, and make it as easy a process as possible.

This information is reprinted from my Supreme Lending website; we will take a look at the five steps of the mortgage process, though to closing. This post will take a look at the first step, getting pre-qualified for your mortgage.

This is an excellent time to begin the pre-qualification process. Pre-qualifying can mean several things depending on the lender that you choose, but generally it involves knowing the following points- the area you want to live, the type of home you want, and the loan that best fits your financial needs. Many lenders will pre-qualify you for free. A simple call, with no obligation will allow you to know the type of loan that is best for you. There are hundreds of loans available, so you should know your best options. The lender will also ask if they can pull your credit report. This report will alert the lender to any credit/financial problems. If you've experienced any financial difficulties (many of us have), you should explain that to the lender so they can provide the best alternatives for you. Next, the lender will most likely ask you a number of questions regarding other things about your life such as employment history, saving habits, marital status, ownership of additional properties, and many other questions to help them determine your ability to repay the loan. This is standard procedure in the mortgage process, so please don't be alarmed. The following are some additional questions a lender might ask: Are you a first time homebuyer? A first time homebuyer has not owned a home in the last three years or is a recently divorced homemaker. Why is this important? Because there are many programs that require a lower down payment, provide a lower interest rate, or even provide down payment and closing cost assistance to new homebuyers. Are you a Veteran? Many Veterans qualify for a special VA loan that requires no down payment! In most cases, it is easier to qualify for a VA loan. So, why not use this special benefit? Becoming pre-qualified is an important step in the mortgage process to enable you to get into the right house with the right terms and conditions. Furthermore, getting pre-qualified helps you strengthen your position when negotiating with the seller as they now know that they have a qualified borrower.

John Lyng is a Mortgage Loan Officer with Supreme Lending. He is experienced with traditional bank programs, as well as alternative programs to help people get into their home. John has a varied background in working with mortgage banks and non-profits, and believes in guiding families to prepare for affordable homeownership.

If you have questions about this or any mortgage-related topic, please contact John Lyng directly at 214-862-3579, or send an email to: John.Lyng@SupremeLending.com.