11 things you need to do before applying for a mortgage

Getting money to buy a house is a big commitment. Make sure you're fully prepared by ticking off the things you need to do before applying for a mortgage. Read on!


How to prepare for your mortgage application

Calculator with house model, home loan or mortgage concept
Things you need to do before applying for a mortgage. Source: Adobe Stock

If you are on your way to buying a house or have been thinking about it, there are some things you need to do before applying for a mortgage.

Crop close up of realtor give keys to man buyer or renter buying first home from agency. Real estate agent or broker congratulate male tenant with house or flat purchase. Ownership, rental concept.

10 tips for first-time home buyers

Buying your first home is a huge milestone. Make sure you're prepared by following these tips for first-time home buyers. Keep reading!

By preparing in advance, you can make the process much smoother and increase your chances of being approved for a loan. Here is a list of things you can do. Keep reading!

11 steps to getting your finances in order for a mortgage

Are you ready to take the plunge and become a homeowner? It’s one of life’s biggest milestones, and it may feel daunting if you’re like many people out there. 

However, it doesn’t have to be so overwhelming! You can get your finances for that all-important mortgage application process with a few simplified steps.

Read on for 11 key things to do before applying for a mortgage. Then, when the time comes, you’ll be entirely prepared and ready to start shopping around for the right property.

1. Track your score

The first thing you need to do before applying for a mortgage is tracking your credit score. This will give you an idea of where you stand and whether you need to improve your credit before applying.

You can get a free credit report from each major credit bureau once per year online.

2. Check for errors

Once you have your credit reports, check them carefully for any errors or inaccuracies. Sometimes, credit companies may add wrong information to your report or take a long time to update it.

If you find any, dispute them with the credit bureau right away. These errors could drag down your credit score and make it harder to get approved for a loan.

3. Pay off debts

Doing Accounting at Home: Happy Couple Using Laptop Computer, Si
11 steps to getting your finances for a mortgage! Source: Adobe Stock

Another important step before applying for a mortgage is to pay off any debts you may have, such as outstanding medical bills or credit card balances.

This will improve your debt-to-income ratio, making you a more attractive candidate for a loan. Plus, it will free up more of your income to put toward your mortgage payments each month.

Multiple personalized credit card offers

Applying won't hurt your credit score

You will be redirected to another website

4. Save up

Another crucial step to take before you get a mortgage is to start saving as much money as you can as soon as possible.

You’ll need to have enough saved up for a down payment on the home, as well as closing costs and other fees associated with getting a mortgage.

The more money you have saved, the easier it will be to get approved for a loan and find a home within your budget.

5. Reduce your debt-to-income ratio

Lenders will look at your debt-to-income ratio to determine how much of a risk you are.

A lower ratio means you’re a better candidate for a loan. You can reduce your debt-to-income ratio by paying off some of your debts or increasing your income.

CREDIT text on paper with calculator and notebook. Business

How to build credit to buy a house: Ten best tips

Creating your strategy is key, but some steps you can take will immediately impact your score if you want to know how to build credit to buy a house. Keep reading!

6. Know how much you can afford

Before applying for a mortgage, you must have a realistic idea of how much house you can afford before you start looking.

Remember that your monthly mortgage won’t be the only cost associated with owning a home; property taxes, insurance, and maintenance costs are also to be considered.

Use an online calculator to get an estimate of how much house you can afford. These calculators are available on many websites for free. That can save you hassles and time.

7. Study up on mortgages

Different types of mortgages are available, and each has its own benefits and drawbacks. It’s important to learn about the different types of mortgages before you start shopping for a home that’s right for you.

Also, understanding what fees are associated with it, the interest rate you’ll be paying in the short and long term, etc.

8. Get pre-approval

Once you’ve done your homework and know how much house you can afford, it’s time to get pre-approved for a loan.

Pre-approval will give you an idea of the interest rate you’ll qualify for and how much money you’ll be able to borrow. It’s also a good bargaining chip when it comes time to make an offer on a home.

9. Check on Penalties and Rates

Hand of Asian woman are calculating costs and payment checking a
Make the most of your mortgage! Source: Adobe Stock

Additionally, before applying for a mortgage, it’s important to research different types of loans and lenders to ensure that you find the best option for your budget and needs.

Make sure to check out the interest rates that each lender is offering as well as any penalties or fees that may be associated with the loan. It will help you avoid any unwanted surprises down the line.

10. Check Customer Reviews

Reading customer reviews is one of the best ways to gauge how reliable a lender really is. Online reviews can provide valuable insights into customers’ satisfaction with their experience or mortgage type.

So that can be extremely helpful in making an informed decision about who to trust with your loan application process.

11. Read The Bottom Line

When comparing options from different lenders, make sure to read all of the fine print so that you fully understand all of your rights and obligations under each loan agreement.

It’s also important to ensure that all fees associated with taking out a loan are clearly laid out before signing any documents so that there are no unexpected costs down the line.

That said, applying for a mortgage is an important financial decision, so it’s essential to do your research beforehand. Doing it can ensure you get the best deal possible and peace of mind.

Also, checking on penalties and rates, customer reviews, and reading through the fine print will help you decide when selecting a lender or type of loan for your needs.

With these tips in mind, you’re ready to explore your options! Keep reading and choose the best mortgage option for your needs!

Real estate agent to present the property (house) to customer.

Choose the best mortgage for your finances

Your choice of mortgage affects the quality of your financial life. Here's how to choose one that fits you and know what questions to ask a lender.

About the author  /  Suzana Brito

I'm a Language Studies graduate and have always been interested in writing and sharing knowledge. By creating content about finances and related products, I believe in contributing to people achieving financial freedom and their goals in life.

Trending Topics


Porte Mobile Banking application: how does it work?

Don't miss out; explore the incredible benefits of Porte Mobile Banking. See how to apply, step by step, now in our post! No ATM fees.

Keep Reading

How to buy cheap Breeze Airways flights

Flying doesn't have to be expensive. Learn how you can save money on your next Breeze Airways flight with these easy tips!

Keep Reading

Application for the U.S. Bank Cash+™ Visa Signature® card: how does it work?

If you're good with cashback management, the U.S. Bank Cash+™ Visa Signature® card is for you. Learn how to apply for it.

Keep Reading

You may also like


Net First Platinum credit card review: is it legit and worth it?

To purchase at the Horizon Outlet, you need a merchandise credit card like the Net First Platinum. Learn more about this card here.

Keep Reading

The Centurion® Card from American Express review: is it worth it?

Only 1% of the world can qualify for The Centurion® Card from American Express. Keep reading to know if it's worth the price.

Keep Reading

Prime Visa Credit Card: is it worth it?

Learn why the Prime Visa Credit Card might be an excellent fit for you with its cash back rewards and generous welcome bonus!

Keep Reading