Step-by-Step Mortgage Guide

Finding competitive mortgage offers is only one step in the mortgage process. Check out our helpful mortgage guide for advice on each step of the way.

Get your credit report. Whether you're applying for competitive mortgage offers or a car loan, it's important to check your credit before applying for any major loan. Order your free annual credit report from the credit bureaus and review it for accuracy. Identify what your assets and liabilities might be from a lender's point of view. Also obtain your credit score. The higher your score, the better the chance that you will get competitive mortgage offers from lenders.
Figure out your budget. The best measure of how much home you can afford is the debt-to-income ratio. When issuing competitive mortgage offers, lenders examine this ratio to determine how large of a loan they can give you. Typically, lenders use a cap of 36% for the maximum debt-to-income ratio. Another good rule of thumb is that housing expenses, including monthly payments, mortgage insurance, etc., should not consume more than 28% of your gross income.
Choose the mortgage that fits your needs. We can supply you with competitive mortgage offers on a variety of mortgages, including fixed-rate, adjustable-rate, hybrid, and option ARMs. Choosing the mortgage that is right for you will depend on your financial situation, risk tolerance, and the interest rate climate. Learn more about different types of mortgages on the next page.
Pre-qualify for a mortgage. Once you receive your competitive mortgage offers, you will have the option to pre-qualify for a mortgage. Pre-qualifying is usually free, and will help you limit yourself to homes you can afford, demonstrate your seriousness about buying, and act quickly if you find a home that is highly sought after.
Compare competitive mortgage offers. Experts recommend getting at least three different competitive mortgage offers, all of which you can obtain on our site. Compare these offers using the APR, or annual percentage rate, as this is the best indication of the loan's total annual cost.
Get pre-approved. A pre-approval means a lender has thoroughly reviewed your financial credentials and has given you the green light for a mortgage of a specified amount. A pre-approval letter can make you a more attractive buyer to sellers.
Lock in an interest rate. The closing process takes a considerable amount of time, and you don't want the rates on your competitive mortgage offers to increase in the meantime. Ask lenders if they are willing to lock in your initial interest rate.