Steps to Take Before You Apply for a Mortgage

by Paul Valeri 10/29/2018

If you plan to buy a house, you'll want to apply for a mortgage before you launch your house search. That way, you'll have your finances in order and can narrow your home search accordingly.

Ultimately, there are several steps that you should take prior to applying for a mortgage, and these are:

1. Check Your Credit Score

A bank or credit union likely will analyze your credit score as it reviews your mortgage application. However, you can find out your credit score free of charge before you kick off the mortgage application process.

You are eligible to receive a free copy of your credit report annually from each of the three credit reporting bureaus (Equifax, Experian and TransUnion). Submit a request for your credit report today, and you can receive comprehensive insights into your credit history.

2. Examine Your Earnings and Debt

How much you currently earn and your outstanding debt could play pivotal roles in your ability to acquire a favorable mortgage. Thus, you'll want to examine these factors closely so that you can better understand how lenders will view your mortgage application.

Also, if you have lots of outstanding debt, there is no need to worry. If you allocate the necessary time and resources to learn about your debt and pay it off, you can increase the likelihood of obtaining a favorable mortgage.

3. Establish a Budget

Although a mortgage may prove to be essential to buy a house, it is important to consider various homebuying expenses as well.

For example, you may need to pay closing costs, home inspection fees and other expenses throughout the homebuying process. If you're worried about having the necessary finances to cover these costs, you may want to start saving money for them as soon as possible.

It often helps to account for the costs associated with cable, electricity, internet and other home must-haves too. The aforementioned homeownership expenses can add up quickly, but those who plan ahead can ensure they have sufficient funds available to cover these costs.

As you prepare to search for a house, it usually is a great idea to hire a real estate agent. This housing market can help you prepare for each stage of the homebuying cycle and ensure you can achieve your homebuying goals.

Typically, a real estate agent will meet with you and find out what you want in a dream house. This housing market professional then can keep you up to date about residences that match or exceed your expectations.

Perhaps best of all, a real estate agent understands that no one should be forced to overspend to acquire their ideal residence. As such, this housing market professional will make it simple for you to discover a terrific house at a budget-friendly price.

Lastly, don't hesitate to reach out to a real estate agent for guidance before you apply for a mortgage. With a real estate agent at your side, you can learn about lenders in your area and find one that can provide you with the financing that you need to purchase your dream house.

About the Author
Author

Paul Valeri

Put my record as the longest standing Certified Residential Specialist in all of Western Connecticut to work for you today. Licensed broker in CT since 1973, REALTOR Emeritus, I remain at your service, full-time and vital as ever, specializing in Fairfield and Litchfield county residential & serious commercial activity. My picture on the porch of my current home speaks to the fact that I, also, specialize in the design, sale, and construction of classic full log homes, carefully crafted out of specimen full logs originating from First Nation forests off the west coast of British Columbia. Scandinavian scribed, these full log homes are rarely, if ever, available in the eastern United States.

Paul Valeri: born In 1948, married, resides in Bridgewater, CT in their lodge of full log western red cedar. A graduate of the University of Notre Dame. Bronze Star decorated Vietnam Veteran. Owner-Broker of Paul Valeri, REALTORS since 1975. President of the Non-Profit Development Corp of Danbury since 1981. Founder of Danbury’s Vet House, home for ten previously homeless veterans. Canadian Board of Directors for the Miramichi Salmon Association, and founder of its First Cast MSA, a mentorship program that introduces new blood to Atlantic salmon fly fishing. Trustee with the Danbury Museum & Historical Society and its Moderator for The Hat City Ball.

Hobbies include mountain hiking, fly fishing, and playing golf (badly), walking preferred!