The First Step to Getting a Mortgage

The First Step to Getting a Mortgage

Getting a mortgage is certainly not a joking matter, there are so many things that you have to put in order and also to consider that it is enough to drive anyone out of their minds. It is a plain fact that you will need all the help you will get; especially if you do not know where to begin with in getting a mortgage loan. But no worries, you can learn what that first step here and you can be on your way to getting a mortgage and your dream house in no time.

 

First thing that you will have to do is to get an application form. This application form is widely called the 1003 and you get it from the lenders. You are then known as a potential borrower instead of a borrower since your loan application has not been approved yet. You only turn into a borrower once your application gets approved. So, this 1003 form is something that you, the potential borrower will fill up with all sorts of information; information about yourself, some information about whatever property you have and also some information about the loan that you are requesting from them. Basically, all the information that the lender will need to have before that lender comes to a decision that may affect your mortgage loan.

 

Take into consideration however that just because you fill up a form does not mean that it will get approved. There are some instances that loans do get denied. You can just apply for another loan with another lender; hopefully a mortgage loan that you can afford.

 

Next thing you will want to know about is the appraisal fee. These appraisal fees are something that the lender may charge you, the potential borrower, so that they will accept your application and process it. Again, just because you pay an application fee does not necessarily mean that your loan will get approved by the lender. These application costs may also be non-refundable even if your application gets denied. But not all lenders charge these fees and some application fees even cover appraisal costs and other things that have to be done when processing your loan.