The 5 Basic Steps to Getting a Mortgage

If you are unfamiliar with the mortgage process – perhaps you are a first time homebuyer or have not purchased a home in a long time – below is a quick summary of the five steps in the mortgage process.

Prequalification

Before you actually go through the paperwork of a loan application you will be asked to "pre-qualify". Your realtor may refer you to a lender to get you prequalified so that when you look at houses, the sellers know that you are a serious buyer with the money to back up any offers you make.

In prequalification, the lender gather information from you about your income and debts, and makes a financial determination, subject to later verification during the underwriting process, about how much home you may be able to afford.

Its good to know how expensive a home you can afford before you go shopping for one.

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