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How to find the right mortgage lender?

Mortgage Preparation: Your First Step to Homeownership

Getting your finances in order is an essential first step when purchasing a home. The process of prequalifying for a mortgage may feel intimidating, but with the right guidance, it doesn’t have to be. Let me walk you through how to prepare for this exciting journey and what you’ll need along the way.

Why Prequalification Matters

Before you dive into home tours and start envisioning your dream home, securing a prequalification letter should be your priority. This step helps you understand your budget, strengthens your position as a buyer, and gives sellers confidence in your ability to close the deal. With my years of real estate experience and the support of Coastal Realty Group, I’ll help you find a trusted mortgage lender who pairs expertise with a client-focused approach to deliver outstanding results.

Prequalification Checklist

To streamline the process and avoid surprises, here’s a checklist of what you’ll need to gather before starting your mortgage application:

  1. Personal Documents
    Prepare two forms of government-issued ID, your Social Security number, and any legal documents, such as divorce papers, if applicable. Proof of ownership for other properties may also be required.

  2. Credit Review
    Review your credit report to ensure accuracy and resolve any disputes. Avoid making changes that could affect your score, such as opening new credit accounts, closing existing ones, or increasing your credit utilization. A healthy credit score is key to securing the best loan terms.

  3. Tax Returns
    Most lenders will require tax returns from the previous year, and in some cases, the last two years.

  4. Proof of Income
    Provide documentation such as W-2s, recent pay stubs, or 1099s. If you’re self-employed, a year-to-date profit and loss statement may be necessary. Be sure to include proof of additional income sources, such as Social Security, child support, or government assistance.

  5. Proof of Assets
    Gather bank statements, retirement account balances, and information about any investment holdings. These documents show your financial stability and readiness for a down payment.

  6. Debt Overview
    Create a summary of all debts, including monthly payments and outstanding balances for credit cards, loans, and other obligations. Child support payments or other recurring financial commitments should also be included.

  7. Down Payment and Closing Costs
    Have funds for your down payment and closing costs readily available in your bank account. If these funds were a gift, your lender might require a signed letter confirming that the money does not need to be repaid.

  8. Rental History
    If applicable, provide proof of on-time rent payments for the past year, such as canceled checks or payment receipts.

  9. Compare Lenders
    Shop around for mortgage lenders to find the best rates and terms. A home is one of the biggest purchases you’ll make, so it’s worth the effort to secure a competitive deal.

Ready to Take the Next Step?

Navigating the prequalification process doesn’t have to be overwhelming. I’m here to guide you through every step. With my experience and the resources of Coastal Realty Group behind me, I’ll help you find a mortgage lender you can trust and ensure a seamless start to your home-buying journey.