If you have ever thought about applying for a mortgage for buying your own house, then you must be a bit worried on how to apply for a mortgage. If this is the case, and you are applying for a mortgage for the first time, then you should follow the steps outlined below, which will be of great help to you if properly implemented:
In the first instance you should consider your current income. While considering this, you should also take into account how secure your job is because it may take about 15 to 30 years to clear up the loan, and if for some unfortunate reasons, you fail to pay your installments timely and properly, you may lose your home. Therefore, it is most essential that your job and income should be secure enough.
The second thing to consider is how much you can afford. Remember, most financial institutions have the knack of offering you mortgages which are more than what you can pay for. You will also have to pay other expenses including insurance and taxes as well in addition to the cost of the mortgage. All this will be added in your monthly expenditure.
When you are searching for a mortgage you will find two types of lenders; they are the direct lenders and the mortgage brokers. The direct lenders are those financial institutions or bankers who have the money to lend you, while the mortgage brokers are the middlemen and find the best direct lenders for you.
After deciding about the lender, you will have to fill out an application form. You will have to provide a number of information and give some supporting documents. Most of the information is about your yearly income, length of service and your assets. You will also have to give the information about the other loans or credit cards that you may have. The lender will go through your credit report, bank statements, tax information, and insurance and then send an appraiser to make a valuation of the house. If everything goes well, you will be sanctioned the loan.