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Steps to Applying for a  Mortgage - What You Need to Know

Buying a house can be stressful. For first-time homebuyers especially, there is a lot of uncertainty around applying for a mortgage.

That is why preparing for and understanding the process can decrease some of the stress of applying for a mortgage.

There are many reasons why as a borrower, you would want to apply for a mortgage. The most obvious is that you cannot afford to buy the house in cash and need to make installment payments on it over the next 15 to 30 years.

Important Steps to Applying for a Mortgage

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The pre-approval stage of getting a mortgage is typically relatively pain-free. First, a loan officer will ask you some questions and get basic verification of your income and credit score.

Pre-Approval

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Getting a property under contract is a prerequisite to moving forward with the lending process because the bank will need to consider the property you are buying.

Getting a Property Under Contract

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Most lenders will use what is called a 1003 Uniform Residential Loan Application. If you do not see this application and are going through a conforming loan process, there is a good chance that you are going through a bank’s questionnaire and filling out details so that their software can fill out the form for you.

Application

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