How To Get Mortgage Loan

It's not as complicated as you might think to learn how to get mortgage loan so that you can buy a house. It's a simple matter of calling a mortgage broker or walking into a bank to get the process started.

1. Check your credit report. Before you attempt to get mortgage loan, pull a copy of your credit report to see if you have negative marks. You are entitled to one free credit report every year from all of the major credit reporting agencies (Experian, Equifax, and Transunon). Get your FICO score as well, as this is the score that the mortgage lender will look at to determine if you are credit worthy enough to get mortgage loan.
2. Call a bank or broker. Once you've got an idea of your credit score, call a bank or mortgage broker to ask for a rate quote. Give basic details about your income, savings for a down payment, and credit score to see if you're eligible to get mortgage loan (you do not have to give your social security number until you're ready to seek a pre-approval).
   
3. Review the rate packages offered. If you're eligible to get mortgage loan, ask to hear about all of your options for a mortgage loan including the rates, length of loan, and monthly payment. If you like your options with the lender, you can give more detailed information (including SSN) so the lender can run a credit report and get your pre-approval.
   
4. Fill out an official loan application with the lender. The lender will use this application to put together an official package for your mortgage loan after the pre-approval.
   
5. Shop for your house. Find a home (show your real estate agent the pre-approval letter). When you find your home, the lender will begin the process of filing for your mortgage loan and set a closing date in concert with your real estate agent and the seller.

Resources:

HUD