✅ Step 1: Before You Apply
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☐ Check your credit score
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☐ Review your credit report for errors
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☐ Calculate your debt-to-income ratio (DTI)
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☐ Determine your comfortable monthly payment
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☐ Save for down payment (3%–20% depending on loan type)
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☐ Budget for closing costs (typically 2%–5%)
📄 Step 2: Gather Required Documents
Income Documentation
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☐ Last 2 years of W-2s (or 1099s if self-employed)
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☐ Last 2 years of tax returns
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☐ Most recent 30 days of pay stubs
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☐ Proof of additional income (bonus, commission, rental, etc.)
Asset Documentation
- ☐ Last 2 months of bank statements
- ☐ Retirement or investment account statements
- ☐ Gift letter (if receiving down payment assistance)
Employment Verification
- ☐ Employer contact information
- ☐ Two-year employment history
🏦 Step 3: Loan Preparation
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☐ Choose loan type (Conventional / FHA / VA / USDA)
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☐ Get pre-approved (not just pre-qualified)
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☐ Compare rates from at least 2–3 lenders
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☐ Review APR — not just interest rate
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☐ Understand mortgage insurance requirements
🚫 Step 4: What NOT to Do During the Process
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☐ Don’t open new credit accounts
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☐ Don’t finance large purchases (cars, furniture)
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☐ Don’t change jobs without speaking to lender
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☐ Don’t make large unexplained deposits
🔒 Step 5: Before Closing
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☐ Lock your interest rate
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☐ Review Loan Estimate (LE)
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☐ Review Closing Disclosure (CD) 3 days before signing
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☐ Bring certified funds for closing
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☐ Schedule final walkthrough
💡 2026 Pro Tips
✔ Rates are hovering around the low-6% range in early 2026.
✔ Strong credit and stable income = better terms.
✔ Getting fully underwritten pre-approval strengthens offers in competitive markets.