How to Get a Mortgage in Frederick, MD

Buying a home is exciting, but at getting your first mortgage can seem daunting. When it's time start looking for a mortgage in Frederick, MD, you'll want to be sure that you have everything ready before you reach out to a broker. Here are the steps to follow and things you should be prepared to do before taking that first step.

1.) Straighten Out Your Finances

You don't have to have perfect credit to get a mortgage, but you'll get the best rates if you put in an effort to get your finances in order first. Clean up any negative marks on your credit history and take steps to reduce your outstanding debts. Avoid applying for any other debt or lines of credit until after your mortgage is approved.

2.) Get Preapproved

Preapproval gives you an idea of how much of a budget you have to work with. This is very important. If you start shopping for a home without preapproval, you might fall in love with something outside of your budget and be disappointed when you're rejected. This is a good time to shop around for lenders. You don't have to stick with the lender who gives you preapproval, but you certainly can if they're the right fit.

3.) Decide on the Right Type of Mortgage

There is more than one way to get a mortgage in Frederick. Depending on your circumstances, you may qualify for a government-backed loan. You will also need to decide between a fixed or adjustable rate and determine the term of your mortgage. This can be complex, so it might be best to talk through your options with a mortgage broker before making a final decision.

4.) Choose Your Lender

If you didn't shop around before getting preapproved, now is the time to look for the lender you want to work with. You can get recommendations from your real estate agent or a mortgage broker. Asking family and friends about their experience is a good idea as well. To get the best deal, be sure to compare the fees, down payment requirements and current mortgage rates across multiple lenders.

5.) Submit Your Application

A lot of paperwork is required when applying for a mortgage. You may have already provided some of this when getting preapproved, but you will need to do it again if you're working with a new lender. You'll want to provide: Your W-2 forms and tax returns from the past two years, pay stubs from the past month, proof of any other sources of income, recent bank statements and details about your other long-term debts.

If you're ready to take the next step toward home ownership, contact The Deibler Group of Frederick, MD today. We'll be happy to help you understand your options and walk you through the process.