5 Things You Should Always Do When Getting A Mortgage

You're buying a new home or refinancing an existing mortgage. The rates look great and everyone promises to have money in your hands quickly. But if you want the best mortgage for your situation, the best deal in terms of rates and fees, and the quickest turnaround, there are a few things you should do well before you apply for the loan!

Figure out how much your bills are every month.

Many people focus on what the mortgage payment will be and forget about their other bills, like homeowners insurance, flood insurance, mortgage insurance, utilities, credit card payments, groceries, unexpected auto repairs. Make sure you give your loan officer a clear picture of your financial situation. If you don't give the most accurate picture, you might find yourself with higher fees and interest rates.

Think about what your financial goals are.

A mortgage is more than just interest rates, fees, and APRs. The right mortgage can help you pay for college, plan for retirement, keep monthly payments low, improve your credit, and finance home improvements. Talk to your loan officer about both your short-term and long-term financial goals.

Save those bills, paystubs, and bank statements!

When you have all your documents lined up ahead of time, the mortgage process will go more smoothly. We've got a handy checklist for you on our Web site.

Check your credit record once or twice a year.

It's easier to fix errors or dispute black marks when you check regularly. If you find out during the mortgage application that something is wrong on your credit report, it may be too late to fix it. You might either pay more for the loan or end up having the loan significantly delayed.

Choose a home or mortgage within your means.

When the economy is bad, you may not get the raise or new job you'd hoped for, so buy a house or get refinanced based on what you can pay now, not next year. Calculate how much home you can afford using our calculator.