How To Apply For a Home Loan

Applying for a home loan is necessary to obtain the funds to purchase a home. Finding the right lender is essential to ensure that you can be approved for a certain amount of money that you’ll borrow. If you want to apply for a home loan, there are a few necessary steps to take when starting the process.

Improve Your Credit Score

Boost your credit score to stand out as a borrower and allow lenders to have more peace of mind approving your loan. Your credit score will also determine your interest rate, making it necessary to make your payments on time and reduce the amount of debt that you’ve accumulated. Your debt-to-income(DTI)* ratio will also influence how much money you can borrow, making it necessary to pay off auto loans, student debt, and credit card balances.

Secure Employment

You’ll need to be employed at the same company for at least one year to qualify for a home loan, which proves that you’ll be able to make your mortgage payments on time. Avoid changing jobs or becoming self-employed during your application process, which can cause you to be denied. (Read what you need to know about fixed mortgage rates here.)

Save for a Down Payment

The down payment is necessary to secure the loan, making it important to save an average of 20 percent of the selling price of the house that you purchase. If you are a first-time homebuyer, you may be able to put less down or no money down at all if you’re obtaining a VA loan. You’ll also need to calculate what you can afford by adding up your household income and multiplying it by two or three. Look for a mortgage company in Las Vegas that provides the type of loan that you’re looking for in the area. You’ll also need to consider other expenses and costs associated with homeownership, which include homeowners insurance, HOA fees, utilities, property taxes, and the cost of repairs and maintenance.