While it might seem like an onerous undertaking, applying for a mortgage can be surprisingly simple. Once you break
the process down into simple steps, you’ll feel much more confident in starting your mortgage application journey.

Prequalification & preapproval

The first step in the process is getting prequalified and preapproved for a mortgage.

You typically need to only fill out a simple form to be prequalified for a mortgage (some lenders offer this service
directly through their website). The form will ask for basic information about you and your finances.

You’ll have to fill out an official mortgage application to get preapproved. Your lender of choice will ask for
official financial information from you, including tax returns, proof of income and a list of any debts. 

Credit checks

Your lender will run a credit check, or “hard credit inquiry,” detailing your payment history, number of open
accounts and other factors making up your credit score. This is part of your preapproval process.

The higher score you have, the better interest rate you’re likely to receive. Building good credit takes time, but
can pay off with a lower interest rate on your mortgage.

Additional paperwork

Not every mortgage application will have identical requirements. Each potential borrower is unique, with different
debts, assets and liabilities. If you apply for a mortgage jointly with a partner, you’ll also have to factor in
their finances.

Mortgage applications can seem daunting. With a solid understanding of these basic steps, you’ll be well-prepared for
taking this major step toward homeownership.