Many people dream of buying their first home, but applying for a mortgage loan is a different story. If you’ve never been through the process, the volumes of paperwork and documentation the bank needs can make the application confusing and overwhelming. Fortunately, knowing what the lender is looking for can help you get the necessary financing without unnecessary stress or unpleasant surprises.

What Do You Need to Secure a Mortgage?

1. An Acceptable Credit Score

Your credit score is one of the most important factors in determining whether you’ll get approved and what your interest rate will be. If you plan on buying a house soon, get a free copy of your credit report and check it over carefully for errors, reporting any you find to one of the three national credit bureaus. To boost your score before applying for a mortgage, make all payments on time and pay down credit card debt. 

2. The Down Payment

The more money you can put down on your new house, the better the chances of getting approved. Most private banks prefer borrowers to pay at least 20% of the purchase price, but you may also qualify for an FHA loan with a down payment as little as 3.5%. Because a higher down payment usually translates to a lower interest rate, start saving well before you start house hunting.

3. Proof of Income

Before approving a mortgage loan, banks will want a detailed accounting of all your assets, including your income and savings. In addition to statements from all of your savings and investment accounts, you should also gather tax returns and W-2s for the previous two years, as well as three months’ worth of pay stubs.
 

As a small, local lender, Talbot State Bank provides great rates and personalized service that takes the stress out of the mortgage application process. Whether you’re buying your first home or purchasing another investment property, you can rely on their friendly team to help you get the financing you need. Visit the bank’s website to see how they can help you achieve your financial goals, or call (770) 692-0900 to reach their branch in Fayetteville, GA. To speak to a loan officer in Woodland, call (706) 674-2215.