Applying for a Mortgage in Santa Cruz
When applying for a mortgage, it's important that you have a basic knowledge of the process.
Understanding the mortgage application procedure can remove some obstacles which could jeopardizing your home purchase.
Here are some home loan tips to get you started.
Before You Apply for a Mortgage
Do some homework before you apply for a mortgage. In addition to home loan resources available on this website, there is a wealth of knowledge available at the federal and state levels that will give you the inside track on home buying and home loans.
Be sure to take a look at these resources.
Determine Your Budget
Think about what your budget will allow, what type of home you want, and what type of mortgage you might seek. Determining your budget will help you find the right home for your circumstances.
It makes little sense looking at home above what you can afford on a monthly basis and in the long run. It also doesn’t make sense buying too small. Too little space will be a source of frustration for many years.
It's best to know your budget and purchase a home that meets your needs today and into the future.
Your mortgage expert can help evaluate your financial situation and provide you with the mortgage that meets your needs.
Get Your Credit Report
Your credit report is a history of your credit activities. It is prepared by a credit bureau and is used by financial institutions for determining your creditworthiness. It provides financial institutions insight as to how well you manage and repay debt. It influences how much you are able to borrow and the interest rates you will be charged.
It is a good idea to obtain a copy of your credit report, and make sure it’s accurate. Look for items that could have a negative impact on your ability to get an affordable loan.
You may want to work with a mortgage lender and get pre-approved for a loan. You will be able to review your credit report as part of the pre-approval process and find any issues that adversely affect your ability to secure a home loan.
You can get a free copy of your credit report at www.AnnualCreditReport.com.
What You’ll Need When You Apply
Be prepared to provide with information about you (and, at some point, about the house you’ll buy) to determine your loan eligibility. We will provide you a list of what is needed, but here is a general idea to help you prepare:
Pay stubs for the last month
Bank Statements for the past three months
W-2’s for the last 2 yrs and tax returns
You’ll sign authorizations that allow the lender to verify your income and bank accounts, and to obtain a copy of your credit report.
If you’ve already made an offer on a house or condo, you’ll need to give the lender a purchase contract and a receipt for any good-faith deposit that you might have given the seller.