Intro to Mortgages - Easy Steps for First Time Homebuyers

Buying your first home is exciting, but the loan process can feel a bit daunting. Don’t worry—I'm here to guide you through each step and help make the journey smoother and more manageable.

1. Gather Your Documents Before diving into the mortgage process, it’s helpful to have your documents organized. Check out our mortgage checklist (below) to see what you’ll need to provide. Being prepared from the start will make everything go more smoothly.

   
   

2. Get Pre-Qualified One of the first things you should do is get pre-qualified for a loan. This is a quick estimate of how much you might be able to borrow based on your basic financial details. Getting pre-qualified early helps you understand your budget so you can focus on homes that fit within your price range. It also speeds up the process later on and helps you avoid falling in love with a home that’s out of reach.

   
   

3. Apply for Your Loan Once you’ve found a home you love, you’re ready to complete a full mortgage application. This form asks for detailed information about you, your finances, and the property you’re buying. Your lender will review your application, check your credit, and discuss things like your down payment and any fees. You’ll then receive a Good Faith Estimate (GFE) and a Truth-In-Lending statement (TIL), which outline the rates and costs involved in your loan.

   
   

4. Processing and Underwriting After you submit your application, it goes through a processing team and then to an underwriter. They’ll verify your information, check your credit report, and arrange for a home appraisal. The underwriter will use this information to decide whether to approve or decline your loan based on specific guidelines.

   
   

5. Closing the Loan The final step is closing, where you’ll sign the final paperwork to officially finalize your loan. This usually takes 1-2 hours. Once everything is signed, you’ll get the keys to your new home! Be sure to bring:

   • Your ID

   • Proof of homeowner’s insurance

   • A cashier’s check for closing costs and the down payment

I know buying your first home can be a lot to take in, but I'm here to help every step of the way. If you have any questions or need assistance, don’t hesitate to reach out!

Mortgage Checklist:

Personal Information

• Photo ID

• Proof of Social Security number (copy of SS card or W2 statement)

• Residence addresses for the past two years

• Copy of green card, if not a U.S. citizen

Employment

• Pay stubs (past 30 days)

• Names & addresses of each employer (last two years)

• W-2s (last two years)

• Tax returns: 2-year returns are required for the self-employed

Banking

• Three months of statements for: bank accounts, mutual funds and investment accounts

• Large deposits: explanation and source of deposit. If deposit was a gift you need: signed gift letter, copy of gift check and copy of deposit receipt.

Property Information (if in contract)

• Purchase agreement

• MLS sheet and legal description

• If you already sold your current home: need copy of settlement agreement

• If you are currently selling your home: need copy of listing contract

• Value of personal property and furniture

Business owner (own 25% or more of business)

• Corporate | Partnership tax returns

Self-employed

• Last two years of tax returns (with all pages and schedules)

• Profit and Loss statements (for current year) prepared by an accountant

• K1’s for last years for all S-Corps

Retired

• Pension award letter

• Social Security award letter

Rental Property

• Current rental agreements and tax returns (last two years)

• Child support as income

• Need copy of divorce settlement

• Need copies of cancelled child support checks (12 months)

Divorced

• Copy of divorce decree

• VA Loans

• Report of Separation and copy DD form 214

Debt information

• Info needed on all current loans: names, addresses, account numbers, monthly payments and balances (typically found by pulling credit report).

• Credit report irregularities: credit inquiries (last 90 days), late payments, collections, judgments, liens and charge-offs

• Bankruptcies (if filed within last 7 years): copy of bankruptcy papers