Mortgage Checklist
A mortgage checklist is important to have because it can help you stay organized and make sure you’re meeting all the requirements for your mortgage. It can also help you track your progress and ensure that you’re on schedule.
1. Verify your credit score and get a copy of your credit report:
You can get your credit score for free from a variety of sources, such as Credit Karma, Credit Sesame, and Quizzle.com. You can also get a free copy of your credit report from AnnualCreditReport.com.
2. Review your debt-to-income ratio:
By dividing your total monthly debt payments by your gross monthly income, you can find your debt-to-income ratio. This can help you determine how much money you have left over each month to pay your mortgage.
3. Determine how much money you can afford for a down payment:
Although down payments as low as 3% are permitted under many lending programs, the standard down payment is 20% of the home's purchase price.
4. Calculate your monthly mortgage payment:
To calculate your monthly mortgage payment, you’ll need to know the purchase price of the home, the interest rate, and the term of the loan.
5. Check out the interest rates and loan terms available to you:
The type of mortgage loan you select will affect the interest rate, therefore it's critical to evaluate rates before selecting a loan program.
6. Gather all the documents you’ll need to apply for a mortgage:
Depending on the lender, the specific documents you'll need may vary, but generally speaking, they'll be things like your driver's license, Social Security number, W2s, bank statements, and tax records.
7. Complete a mortgage application:
You can usually complete a mortgage application online or in person at a bank or lending institution.
8. Have a home inspection:
A qualified inspector is often hired to perform a house inspection, which is a crucial step in the property-buying process. The inspector will check the property for any potential issues and offer advice on what should be repaired or replaced.
9. Get pre-approved for a mortgage:
Getting pre-approved for a mortgage shows that you’re serious about buying a home and gives you an idea of how much money you can borrow from a lender.
10. Sign closing documents:
After your loan is approved and the property has been inspected, you’ll need to sign closing documents at a meeting with your lender or real estate agent.