After the seller accepts your offer on your dream home, you'll need to move on to the next step: applying for a mortgage loan. Unfortunately, while house hunting is often an exciting adventure, applying for a mortgage can be confusing, especially for first-time homebuyers. Learn more about the process below to help streamline the application process and get a lower interest rate.

Common Questions About Mortgage Loans

Will the lender check my spouse’s credit score?

Lenders will check the credit report of anyone listed on the application, which means your spouse's score could affect your interest rate and chances for approval. Before applying for a mortgage loan, get a copy of your credit report, check it over for errors, and take care of any issues that are hurting your score.

Is a 15-year or 30-year loan better?

A 15-year mortgage loan will usually have lower interest rates and build equity faster, but the monthly payments will be higher. On the other hand, the lower payments on a 30-year loan may allow you to buy a more expensive house, so your choice will have to depend on your priorities.

Should I choose a fixed-rate or adjustable-rate mortgage?

Fixed-rate mortgages lock in the interest rate, which gives you stability and protects you from climbing costs in the future. If you're planning on living in the house long-term, a fixed-rate mortgage is usually the better option. However, if you plan to sell the property in the next few years, an adjustable-rate mortgage might be the better financial choice.

What documents do I need to apply?

Applying for a mortgage loan is a document-intensive process, so be prepared to submit pay stubs for the last 30 days, two years of tax returns, and bank statements for the previous two months. Also, gather reports from your savings and investment accounts, a list of your debts, and proof of how you got the down payment.

Since 1939, The Missouri Bank has helped homebuyers throughout Warren, St. Charles, and Gasconade counties achieve their dreams of home ownership. As a local bank, they pride themselves on offering affordable mortgage loans and personal service to every customer, along with the technology you’d expect from a national chain. Visit their website for more information on their mortgage services, follow their Facebook for financial tips, and call (636) 327-4900 to reach their location in Wentzville.