Getting Your Mortgage Application Started

by Joe Taylor, Jr.
CMR Columnist

Buying a home in California right now can be an expensive and nerve-wracking proposition. Home prices have skyrocketed at record rates in the past five years. Mortgage brokers have responded by offering exotic loans that have allowed homeowners to buy more than they could traditionally afford. As the market slows and home mortgage rates increase, it is wise to assess your financial situation and research home mortgages before talking to a mortgage broker.

Before you approach a mortgage broker, you may want to talk to a financial advisor. This advisor will help you determine how high a monthly payment you can afford based on current home mortgage rates. A financial advisor can also talk to you about the different kinds of mortgages now offered in California and which ones would be best for you based on your financial situation, goals, and expectations.

Keeping Good Financial Records Eases the Mortgage Process

After you select a mortgage broker, you should begin gathering personal and financial information that you may need during the mortgage application process. The documents you need will depend on your financial and employment situation, but they could include recent federal tax returns, pay stubs, and bank statements.

Pre-Approved Speeds up Mortgage Processing

Getting pre-approved for a mortgage loan, which you can do during the mortgage application process, can speed up the purchase once you find a home. You must have your credit checked to qualify for pre-approval with mortgage brokers. Mortgage brokers will offer different home mortgage rates, and rates can change daily, so it will be worth your while to shop around while you're applying for your mortgage.

Sources
California Association of Mortgage Brokers
The Mercury News

About the Author
Joe Taylor, Jr. coaches beginning mortgage brokers to provide better customer service and to understand creative financing opportunities.

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