As you prepare for the process of buying a house, one of the first things you must consider is how you’re going to pay for it. Unless you have a substantial amount of cash in the bank to make your purchase, you will need to apply for a home loan. According to Cheri Long of Priority Properties, Inc., requesting a mortgage isn’t usually much of a challenge, but you should understand what to expect before starting your application. As the top real estate agent serving the Denver Metro area of Colorado, she has helped advise many prospective homebuyers on the steps involved in successfully obtaining a loan. Below, she gives a basic overview of the application procedure.

How to Apply for a Home Loan If You’re Buying a House 

Research Loan Options 

There are several types of mortgages available, so be sure to explore all your options. To identify which choice is right for your financial situation, you will need to take into account a variety of factors, such as interest rates, your credit rating, and the amount of your down payment. 

Check Out Different Lenders 

Next, you will need to find a mortgage lender that you’re comfortable working with. It’s a good idea to get several quotes on interest rates before making a decision. It’s also essential to consider whether you’re looking for a particular type of loan so that you can make sure the lender you choose offers it. 

Determine How Much Home You Can Afford 

Before you get too far into the process of buying a house, you will need to know how much home you can afford. Lenders typically recommend shopping for properties that cost no more than three times your annual household income. In addition, it’s suggested that monthly mortgage payments don’t exceed more than 28% of your gross monthly income. Keep in mind that the loan amount you’re approved for may not reflect what you can actually afford. 

Gather Your Documents 

After running the numbers and doing your research, it’s time to gather all the paperwork you will need to show your lender. They will use this to assess your financial situation and make a decision on whether to approve you. Some of the documents you will need include proof of income, tax returns, proof of employment, and a list of all your assets, debts, and liabilities.

Fill Out the Application 

Finally, it will be time to fill out the actual mortgage application. This will involve providing details on your personal lifestyle, finances, and your potential mortgage. Take your time and complete all fields accurately. Making even the smallest error can put you at risk of rejection. 

Once you’re ready to apply for a mortgage, it’s important to make sure you know what to plan for. This will help increase your chances of approval. When it comes to buying a house, there is no one better equipped to guide you through each stage of the process than Cheri Long of Priority Properties, Inc. Contact her at (720) 505-3893, or visit her online to view current real estate listings.