Your Step-by-Step
Guide to Home Loans
Mortgages don’t have to be confusing! We’ve broken things down so you can feel confident, informed, and one step closer to your dream home.
Mortgage Application Checklist
To get started, lenders will need some documents to verify your financial info. Here’s what you’ll typically need:
- Property Info: Signed purchase agreement, proof of deposit, and contact info for your real estate team.
- Income: 2 years of W-2s, recent pay stubs, and employer info.
- Other Income: For alimony, child support, Social Security, or VA benefits, include court orders or award letters.
Tip: The faster you provide documents, the faster your loan moves forward!
Understanding Credit
Lenders look at your credit report and score to assess risk.
- Credit Report: A history of your loans, payments, and balances.
- Credit Score: Ranges from 300–850. Higher is better!
Want to boost your score?
- Pay on time
- Keep balances low
- Limit new credit inquiries
Check yours free annually at AnnualCreditReport.com
What Is an Appraisal?
An appraisal is a professional estimate of your home’s value, required by lenders to make sure the home is worth the loan amount.
- Who does it? A licensed appraiser
- Why? To protect both you and the lender from overpaying
- How? They compare your home to similar recent sales in the area
Heads up: You pay for the appraisal, but the lender owns the report.
What is PMI?
Private Mortgage Insurance (PMI) is usually required if your down payment is less than 20%. It protects the lender—not you—in case of default.
- When does it go away? Once you reach 20% equity
- Can I avoid it? Consider a bigger down payment or a piggyback loan
What is Foreclosure?
Foreclosure is when a lender takes back the property if you stop making mortgage payments. It damages your credit and can take years to recover from.
Avoid foreclosure by:
- Communicating with your lender early
- Exploring refinancing or forbearance options
Quick Look: Closing Costs
Closing costs are fees you pay when finalizing your loan—separate from your down payment.
Typical costs include:
- Appraisals, inspections, and title work
- Property taxes and insurance
- Attorney or escrow fees
Tip: Expect to pay about 2–5% of your home’s price. You might even negotiate for the seller to cover some of it.
Mortgage Glossary: Must-Know Terms
- LTV (Loan-to-Value): Loan amount vs. home value
- DTI (Debt-to-Income Ratio): Monthly debts vs. income
- Escrow: A holding account for taxes and insurance
- Underwriting: The lender’s review process for approving your loan
- Rate Lock: Freezes your interest rate for a set time
Want help navigating it all? That’s what we’re here for.
Reach out anytime—we’ll walk you through every step.
Contact us
Have questions or ready to get started?
We’re here to help every step of the way. Whether you need guidance on loan options, the application process, or just want to talk through your next move—reach out anytime. Our team is just a call or click away.