The Mortgage Application Process
Before you apply for a mortgage, it would be of great boon if you first made a checklist so that you can see what you need to do and what things you need to look into before you even fill up that application form. For those first-timers who are applying for their first mortgage, this checklist is especially important since your mortgage application is still up for deliberation. You will want to submit an application for that has all the information that the lending company could want and also, that the information be correct. There are some things that are imperative and you should do, while there are other things that you can skip; it al depends on your situation.
For instance, the first step that you will have to take before you even fill up that application for is to save money, as early as you possible can. You see, when you are buying yourself a home, there are certain inescapable costs that are involved. There is the down payment that you have to pay for, also pay for your closing costs and you will certainly need some monetary reserves kept in the bank so that the lender can be satisfied. The down payment gets bigger the more expensive your house is and the closing costs will be anywhere from $2000 $3000. Plus, the lender might ask you to have some cash reserves in the bank so that these may cover the first 2 or 3 years of your mortgage payments. If you already have the money saved up which you will use to pay for the down payment and the closing costs, then you can skip this step altogether.
It is not cheap, buying a house. It is not a joke either and you have to be open in knowing all the money that you will spend on that house that you are so keen to own. It is for this reason that this should be the number one thing that you check on because if you start saving money as early as now, you will have more money when you apply for that loan and you will be in a better place.