Premiere Plus Realty Co.
Jennifer Johansen, Premiere Plus Realty Co.Phone: (239) 450-0822
Email: [email protected]

Your guide to applying for a house: Mortgage applications & more

by Jennifer Johansen 09/24/2023

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

Jennifer Johansen

Jennifer is passionate about the Real Estate business, and has been involved in related family businesses in construction, architectural millwork, and finance for 20 years. She and her husband relocated to Naples, from New York, 10 years ago, although her family has owned property on Marco Island since the 1980's. She has a Bachelor's Degree in Psychology and a Dual Master's Degree in Counseling and Education. She has acquired many necessary skills that are useful in Real Estate from being in the field of Counseling for many years. She holds the belief that building rapport is vital to helping her clients have a positive experience, while achieving their goals. She is very thorough and detail oriented, and has formed many close relationships with professionals in related fields, such as law, title insurance, home inspectors and other contractors. She aims to offer concierge- level service to her clients at every price point. When time permits, she enjoys spending time with family and friends. Having grown up on the South Shore of Long Island, and enjoying her summers on Fire Island, she loves any activity related to salt water, boating and the beach. Additional hobbies include gardening, art, and studying nutrition, wellness and naturopathy. She is knowledgeable about Naples and Marco Island Real Estate, in estate areas, golf/gated communities, and waterfront properties. She is a member of The Naples Board of Realtors and Marco Island Area Association of Realtors.