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How do you get a mortgage?
First you need to know if you have good credit and what are yourassets. What can you afford to pay for down payment and closingcosts. Second find a reputable mortgage broker.… Check with the BBB andwith your state's Office of Financial Institutions to see if themortgage broker is in good standing. Getting preapproved by amortgage broker is better as they deal with several lenders, thiswill save you from having your credit pulled too many times whichlowers your credit scores and could eventually stop you fromgetting the mortgage you want. Once you are preapproved and have a letter to that effect--startlooking for a home, or put in a purchase contract on the home youhave already found. You will need: your last 30 days worth of paystubs (in consecutive date order), 2004 and 2005 W2s, (if selfemployed you will need your full personal and business federal taxreturns), and your last 2 bank statements (all pages) or any otherstatements where assets are that you are using for the closing,like stocks, mutual funds, or even part of your retirement fund.The lender wants to see that you had to money in your savings andyou are not borrowing it without telling them that now you have anew loan. You will need to find an insurance company for your homeownersinsurance. Please call and get estimates as some insurancecompanies are more expensive than others. Once you have thepreapproval and a contract, the broker will put everything togetherand get it to the lender for their confirmation of the approval. Ifeverything you have shown is true, then the final confirmationshouldn't be a problem, and a closing date will be set. Also onceyou are approved, you do not apply for any credit-no matter what itis until you have signed the closing papers and you have the keysto the house. The lender has the right to re-pull your credit prior to close ifthere are new loans (like a car) or new credit cards with orwithout balances--or you have fallen behind on the payments youalready have, Your preapproval will have to be re-run to see if youstill qualify for the mortgage. You can be turned down at the veryend if your credit has changed! It is a priority that you keep upwith the present credit you have and not apply for anything new.Reserves- the lender wants to see that you have somewhere theequivalent of 2 mortgage payments which they consider your 1st and2nd mortgage payments. This is in case you start spending moremoney than you should when you first get in the house. (MORE)
