How You Can Secure Home Mortgage Loan in 4 Simple Steps?

Becoming a homeowner is a great accomplishment for many. The journey of homeownership is filled with many ups and downs. Therefore, it is no easy feat. However, if you know the fundamental steps, then it becomes a lot easier. To jumpstart your homeownership process, you need to secure a home mortgage loan. With the right mortgage loan, you can streamline the process. You will get proper funding, and secure the best terms and conditions. Buying your own home is a long-term commitment. It requires thorough planning, reliable guidance, and proper financial management.

Let’s take a closer look at the 4 crucial steps you will undertake to get a home mortgage loan. With our expert tips, the approval process might just become a lot easier for you. We have provided you with a list of home mortgage loan options that will benefit you as a first-time homebuyer.

4 Easy Steps to Secure a Home Mortgage Loan:

1. Assess Your Financial Standing:

Before you start the home mortgage loan process, you need to go over your financial standing. You should review your credit score, credit report, debt-to-income (DTI) ratio, and savings for the house. Many first-time homebuyers have less than good credit scores, which is nothing to worry about. You can easily apply for a home mortgage loan, such as a Federal Housing Administration (FHA) loan with a low credit score of 580 and a 57% DTI ratio.

• Pro Tip: Credit score plays an important role in your loan approval application. Therefore, you should wait a couple of months before starting the application to improve your credit rating. You can approve it by repaying high-interest debts and by making regular payments on your credit cards.

2. Get a Pre-Approval for Your Home Mortgage Loan:

Once you have potentially improved your credit score, you can get approval for the home mortgage loan. These signals to home sellers that you are a serious buyer with adequate funding and a good credit score. You will need to submit the mandatory documents such as bank statements, pay stubs, tax returns, and W-2 forms. The lender might ask for your bank statements and tax returns from the last 2 years. Once you have submitted the application along with the documents, the lenders will check your employment history, income stream, credit history, and financial information. If the lenders are satisfied with your application, they will offer you a pre-approval letter. It indicates the loan amount that you will receive.

• Pro Tip: You should make a separate folder that will keep all your mandatory document in one place. This will help you save time and streamline the process.

3. Submit Your Home Mortgage Loan Application and Get Approved:

The lender will review your home mortgage loan application in depth during the underwriting process. The underwriter will review your asset, property details, income stream and credit history in detail. After the underwriting process has taken place, your home mortgage loan will either be rejected or approved. If your application is approved, congrats! You are very close to the finish line. You will then receive a detailed loan commitment letter from the lender that will outline your specified terms and conditions. All you have to do now is sign the paper and pay the closing costs.

• Pro Tip: You should sit down with your mortgage agent and go over the terms and conditions which are present in the loan commitment letter.

4. Pick the Right Mortgage to Get Your Dream Home:

When you start searching for a home mortgage loan, you’ll be surprised to know that there are many options out there, especially for first-time homebuyers. Here are the most commonly applied for home mortgage loan options:

• VA Loan for Veterans
• First Time Home Buyers Program
• Bad Credit Loans
• Self-Employed Loans
• Adjustable-Rate Mortgage (ARM)
• Fixed Rate Mortgage

To better understand what each loan option entails, you can reach out to your local mortgage lender or check online.

How to Get in Touch with a Reputable Lender?

A home mortgage loan is a great financial tool that provides you with the funds to purchase your dream property. It can be quite a daunting task, but hopefully, this step-by-step guide helped you out a bit. If you don’t understand certain requirements or have questions regarding eligibility criteria, then you can get in touch with Dream Home Mortgage. With over 27 years of experience and sheer dedication, Dream Home Mortgage, under the capable leadership of Mr. Hussein Panjwani, has assisted thousands of Americans to achieve their dream of homeownership. You can also add your name to the list of proud homeowners by booking a free 30-minute consultation.