Mortgage 101: How to Make the Mortgage Approval Go Smoothly

For first time homebuyers, the mortgage application and approval process may seem daunting. These tips can help make the process seem easier.

As Millennials secure jobs and develop savings, they are starting to explore the option of homeownership. Since many watched their parents struggle with their home loans during the Great Recession, people in this age group approach the home financing process with a great deal of trepidation. By doing some preparation, young homebuyers will find the path to securing a mortgage and purchasing their first home to be much easier than they anticipated.

Three Ways to Make the Home Financing Process Go Smoothly

Here are five recommendations from Realtor Magazine and the Independent Community Bankers of America to make the mortgage approval process easier for first time buyers:

  • Gather your documentation before you start your application: The vast majority of mortgage lenders require proof of income and expenses, so you will need to have tax returns, bank statements, paycheck stubs, and W-2s to submit with your home loan application.

  • Monitor your credit report: Before your house hunt, you will need to check your credit report and score to make sure you’ll be able to qualify for a mortgage. While you are home shopping, you may want to check the report to ensure there are no reporting errors.

  • Maintain discipline with spending habits: When you are going through the mortgage approval process, you need to try to avoid making large purchases, such as buying a car, and maxing out your credit cards. High ticket purchases made with credit can have a significant impact on your debt to income ratio.

  • To get expert advice about the mortgage process, contact a local mortgage broker today.