Your First Home: A Mortgage Preparation Checklist

Buying a home is a major decision. A little preparation can help you understand your options and move through the mortgage process with more confidence.

Start with a comfortable monthly budget

Look beyond the purchase price. A mortgage payment may include principal, interest, property taxes and homeowners insurance. Depending on the loan and property, mortgage insurance and homeowners association dues may also apply. Keep room for maintenance, utilities and an emergency fund.

Gather your financial documents

• Recent pay statements and income documentation.
• Bank and investment account statements.
• Information about existing debts and monthly payments.
• Identification and any additional documents your loan officer requests.

Self-employed borrowers may need additional business and tax documents. Requirements vary by loan program and financial situation.

Understand prequalification and preapproval

Prequalification can provide an initial estimate based on information you share. Preapproval usually involves a more detailed review. Neither is a guarantee of final approval; the property and your financial information still need to meet lender requirements.

Ask questions before you choose

Compare estimated closing costs, cash needed at closing, loan terms and the full monthly payment. Ask how rate locks work and which conditions must be satisfied before closing.

For guidance tailored to your goals, talk with a Legacy Lending Group loan officer. This article is general educational information, not a rate quote or commitment to lend. Eligibility, terms and costs vary.