How To Get Approved For A Mortgage

Dated: 09/09/2019

Views: 18

Whether you're a first-time buyer or have bought and sold several homes, proving to a lender that you are financially prepared to take on a new mortgage payment can be complex. Doing your research and being prepared for their offers will help ease the stress.


Image title

Begin by gathering all your information. You need to know your monthly income,the sum of all our monthly debts (student loans, credit card payments, car payments, etc.), your credit score, how much cash you can put towards a down payment, and how much house you can afford. There are free online calculators to help you find any one of these totals.


Image title

Calculate your income and debt before meeting with a lender to get a grasp on what you can reasonably afford. For the increasing number of millennial buyers, personal finance expert and founding editor of MoneyUnder30.com, David Weliver, suggests buyers reserve 25% of their gross income for a total housing payment.


Image title

Decide how much you can afford for a down payment. Expect any lender to require at least a 10% down payment, unless you plan on getting a special program loan such as an FHA loan. A minimum of 20% down is typically required to avoid paying mortgage insurance. Having your desired down payment in mind helps you when you start house-hunting, and is a great launching point for a conversation with your lender.


Image title

Have your paperwork ready to hand over. Expect to provide enough pay stubs to cover 30 days of employment. If you're paid weekly, for example, you'll need the last four. If you are self-employed or have various employers, they may ask to see previous tax returns.



Remember that you can get pre-qualified by a lender any time just to see where you stand financially. Getting pre-qualified is nonbinding and informal, but it will give you an idea of the types of homes you will be in the market for when you start your search.


Be sure to shop around for the best rates before making your decision. This is a major financial commitment, and you should be confident you're working with people who want the best for you. If you're feeling overwhelmed and don't know where to start with selecting a lender, I'd be more than happy to refer a few lenders to you that I trust and have worked with in the past.

Blog author image

Rachel Librach - CalDRE #02081922

I understand that buying a home can often times be one of the biggest financial decisions of a person's life. Not only can the whole process seem stressful, emotional, and time consuming, but if you a....

Latest Blog Posts

Make The Final Walkthrough A Priority

Some buyers are so busy coordinating the details of their move that they opt to skip the final walk-through. Here are some reasons why you want to prioritize this in your countdown to moving day

Read More

How To Spot The Next Hot Neighborhood

According to recent market statistics and trends, we are starting to see a lull in the real estate market across the board. This is not uncommon during the winter months as buyers and sellers tend

Read More

PGE Public Safety Power Shutoff Event

Will you be affected?Due to weather conditions in the Central and Northern California areas, PG&E has issued a Public Safety Power Shutoff event that will take place on 10/9/19 starting at 4 am. An

Read More

Thinking About Flipping A House

The availability of homes on the market is low while the demand is high, especially for first-time buyers. If you have some cash to invest, you may be considering flipping a house.Don't forget, the

Read More