Windermere Re Utah - Park Ave
Jim Kelley, Windermere Re Utah - Park AvePhone: (435) 901-1262
Email: [email protected]

The process of applying for a house

by Jim Kelley 11/06/2023

Do you know all the steps involved in applying for a house? The process begins long before you even find the property itself. The mortgage application process can seem daunting and confusing, but the more you prepare, the smoother your experience will be.

Here are the major parts of the process to know:

Know basic mortgage loan requirements

Mortgage loans have basic minimum requirements for you to qualify. Most of these criteria are financial factors, but things like property type also come into account. Some metrics a mortgage lender will consider before giving you a loan estimate are your debt to income ratio, credit score, income and assets. 

Apply with multiple mortgage lenders

Many first-time homebuyers are unaware they have room to negotiate loan estimates. Lenders can be flexible about their rates and fees offered. 

You can shop around and compare prices with other customers. In some cases, you may use it as a bargaining tool in order for a lender to lower your rates. Checking multiple mortgage rates helps you understand how much money you really qualify for.

Get mortgage preapproval before making an offer

Lenders examine your finances - bank statements, taxable return, salary stubs, credit and credit history - and determine the cost for a new home purchase. By obtaining a preapproval letter from a lender before making an offer or even beginning your home search, you can be certain you’ll have the financing you need. 

Also, you’ll have a better idea of how much house you can afford, and a better chance your eventual offer is accepted by the seller. 

Avoid taking on new debts

Mortgage underwriters will evaluate your credit report based on monthly payments of your debt and total income. If you have too many credit cards in one month to repay your loan, your credit score can take a hit - and the lender will notice. To avoid this situation, don’t apply for any credit cards, credit lines or loans while applying for a mortgage.

Other factors to consider

Lenders do not consider your lifestyle or your personal expenses when you apply for a loan, so be sure you include additional housekeeping costs into your financial plan. Interest rate and down payment amount are both major factors in determining the amount of your mortgage payments, but don’t forget to factor your other costs into a budget.

When you apply for a mortgage, you’ll likely be taking on the biggest financial debt of your life. It’s no small undertaking, but it is possible to choose the best loan for you. Keep these basics in mind to keep your process as simple as possible.

About the Author

Jim Kelley

Originally from upstate New York, I moved to Park City soon after college to spread my wings and explore the western United States, taking full advantage of the world class golf courses, beautiful mountains and the greatest snow on earth. 20 years later I am grateful to still call Park City home.

Client experience is my #1 objective. I have a passion for helping people realize their perfect Park City experience. My 22 years of resort management provided me with tremendous opportunity to work with so many different people from all over the world, delivering the services and experiences they desired and facilitating them to take advantage of all Park City has to offer.

Having played, worked and raised three children in Park City, my knowledge runs deep of the community and its surrounding areas, and all they have to offer. I am confident I can help you to find your next dream home in this wonderful community.