Getting a mortgage is stressful and time-consuming. It can also be expensive, with fees and commissions to pay as well as closing costs and the like. If you have bad credit, however, it can be even worse. If you have no history of credit-card debt or other types of debt that can impact your ability to get approved for a loan or other financial services (like utilities), then there are some steps you need to take before even applying for a mortgage:
Prep For The Application Process
The first step in getting a mortgage is to get yourself prepared for the application process. You’ll want to make sure that you have everything together before starting, so here are some things to keep in mind:
Check with your bank on any requirements they may have before applying for a loan. If they require a certain number of years of employment or assets, this will impact how much money you can borrow and what type of loan it is (i.e., fixed-rate vs variable).
Make sure that all required documents are submitted upfront—even if they’re not needed at some point during the process; otherwise they could delay your application by days or even weeks! A bad credit score can also cause problems with loans being denied outright due to late payments or lack thereof; so be sure every piece falls into place before moving forward with anything else (like filling out forms online).
Get Preapproved First, Rather Than Prequalified
Before you get approved, your bank will assess your creditworthiness and do a background check. Your credit history is the sum total of all the payments and bills you’ve made over time.
Your bank will look at this to determine whether or not you can afford to borrow money from them. They will also check any existing debts that are past due, including student loans and credit cards—this helps them determine if there are any red flags in terms of how much money an applicant has available before they can make payments on their mortgage.
After reviewing all this information, banks will generally decide whether or not they want to offer you a mortgage loan based on whether or not this person has enough income (and thus be able to pay back) without incurring too much debt along the way.
Don’t Lie About How Much You Make, Or How Much Stuff You Own.
It’s a good idea to be honest when you apply for a mortgage. Don’t lie about how much money you make. If your employer won’t give you proof of the number, don’t try to fudge the numbers.
Don’t lie about what stuff you own and how much of it is paid off. A lender will see right through any attempts at exaggeration or pretense as soon as they look at your application materials, so don’t do anything sneaky!
Don’t lie about how much debt has been paid off on other loans (you can include those debts in this category). It’s okay if you have some student loans left from school—that’s normal! But if there are other types of loans that aren’t covered by student loan forgiveness programs and aren’t considered “non-dischargeable” by law (like credit card bills), then mention those too; otherwise, lenders may assume that all those payments were paid off long ago when in fact they weren’t even made yet!
On The Loan Application Itself, Be Completely Accurate.
On the loan application itself, be completely accurate. Be honest about your income, assets, and debts.
You’ll need to be able to prove where your income comes from. This is often done by providing evidence that you have a steady source of income, such as a job or business, or at least enough money in the bank that you can afford the mortgage payments and closing costs.
Be honest about your credit history and references (for example, how many people have vouched for you in the past).
Be honest about your job (do they know what they’re talking about?). If there are any discrepancies between what you say and what is on file with an employer or other potential lender, then it may be time for a conversation about why those things aren’t matching up.
Also, make sure that no one else has applied for a mortgage before—if someone else has applied previously with similar information as yours (or worse!), then this could get back to them before long!
Inaccurate Information On A Mortgage Application Can Get You In Legal Trouble And Could Stop You From Getting A Loan
You may be surprised to learn that there are many reasons why an inaccurate mortgage application could get you in legal trouble. First, if the information on your application is incorrect, it could be considered fraud. This could result in a civil lawsuit against you and/or the lender.
Second, if certain facts about your loan aren’t true or accurate (like income), then those details can lead to problems down the road when it comes time for repayment of principal and interest on the loan.
Thirdly—and this one is pretty important—if anything goes wrong with a mortgage transaction (e.g., defaulting on payments), lenders have been known to sue borrowers (and their families) for damages caused by their actions during this process:
The lender may sue over damages caused by missed payments due to late fees/late charges levied against borrowers;* The borrower may take action against another individual(s) who acted negligently towards them during negotiations regarding purchase agreements.
If you follow the steps we’ve outlined above, you’ll be able to get approved for a mortgage loan without any hassle. You’ll save time and money while increasing your chances of getting your dream home! Let’s face it: who doesn’t want that?
