mortgage & credit

The mortgage application process begins with selecting a lender. Before applying for a loan, you should also check the current interest rates, lock-in policies, fees and loan package options offered by the mortgage lender.

Compare Interest Rates
Interest rates will change by the time you are approved for your mortgage, but it's still wise to compare the rates offered by the different lenders you're considering.

Filling Out the Mortgage Application
Once you've selected a lending institution or mortgage broker, you will fill out the mortgage application. Be sure to complete the application completely and honestly. If you inadvertently (or deliberately) put incorrect information on your mortgage application, it could seriously hinder your chances of being approved.

If you're denied a mortgage due to a false application, you could also lose your down payment. So be careful filling out the paperwork and be sure to get all your questions answered by the lender.

Providing Mortgage Documents
During the mortgage application process, you will have to provide a series of different documents to the lender. Whenever you provide documents to the lender, ask them whether or not they require an original document. If they require an original, make sure you keep a copy for your records.

Anytime you are asked for information make sure you provide them the information they need quickly. If you are unsure of what they are asking for, ask your lender to be more specific or help you obtain the information they need.

Mortgage Approval With Conditions
Generally speaking, you will receive a mortgage approval with conditions. It's rare to receive a mortgage commitment without conditions. These conditions may include satisfactory appraisal of the property, termite inspection report, etc.

Make sure you are aware of all requirements and satisfy them by the date(s) requested. Some items are needed before a closing date is set, while other documents can be delivered at the actual closing.

Making Changes to Your Mortgage Application
If anything substantial changes during your application (like a change in employment, significant financial change, marriage, etc.), inform the lender as soon as possible. At the closing, you will be certifying that no substantial changes have occurred. So it's important to address and resolve changes as they arise (and before closing day).

Conclusion
The most important thing to keep in mind is that everyone wants you to get a mortgage as much as you want to get a mortgage, so work as a team. The more up-front and honest you are, the better off you will be in the end.