Meeting with Mortgage Lender

Prepare for Your First Meeting with Mortgage Lender

When you’ve decided that you want to purchase a home, unless you have a bank account with a huge balance, chances are you are going to need to obtain a mortgage. Since getting a mortgage is not as easy as running to the “mortgage store” and picking one up on your way home from work, there are some things you can do to prepare for your initial interview with a mortgage lending institution.

Before Going House Hunting

Before you even begin the hunt for a house, you should meet with a mortgage company to find out how much mortgage you can afford. This will help you narrow down your home selections and keep you from falling in love with more house than you can actually afford to buy. It’s important to note that the amount you can afford may differ from the amount of money you are actually able to obtain, and to avoid financial disaster later on, you really need to limit yourself to the amount you can afford to pay rather than a higher amount you might get approved for. Mortgage lenders typically use mortgage calculators that make use of industry standard affordability ratios to determine what mortgage payment you would be able to afford based on your personal financial factors, including your monthly income and expense obligations. There are free mortgage calculators available online that you can use before your meeting with a mortgage lender, to get an idea of what to expect.

Items to Bring to Meeting

You will need several documents to start the mortgage approval process and fill out an application for a home mortgage. *Bank account statements for all checking and savings accounts for the most recent 3-4 months. *Tax return documents for previous two years *Pay stubs, W2’s or some other form of employment documentation, and income verification. *Credit card statements for several months *Canceled checks or receipts for monthly expenses such as electric, phone, heat, etc *Documentation for all other credit you have, including student loans, retail store credit, furniture, vehicle, personal loans *Gift letters if someone is giving you money towards your down payment and closing, so that it shows you will not need to repay that gift amount.

Other Considerations

After you’ve talked with the mortgage lending institution and completed all the necessary paperwork to get the process started, you will most likely need to pay a fee for the mortgage application as well as an appraisal fee . If you want to know the amount of this before you arrive for your interview, just call the lender ahead of time and ask. It can take anywhere from a couple of days to a couple weeks to find out whether or not you’ve been approved for a mortgage, so you’ll have to be patient after you’ve submitted your application.

If You’re Not Approved

If your mortgage application is denied, you will be given specific reasons why the lender is unable to loan you the money. A denial does not mean your dreams of becoming a homeowner have to end. Most often, denial for a mortgage happens because of your previous credit history, and you can take steps to improve your credit score and reapply in a few months or so.