Determine Affordability: Before applying, assess your budget, including income, expenses, and savings, to understand how much home you can realistically afford.
Get Pre-Qualified or Pre-Approved:
Prequalification: A quick, informal estimate of what you might borrow, based on basic financial information. It usually doesn't involve a hard credit check and doesn't require documents upfront.
Pre-approval: A more thorough assessment where a lender reviews your financial documents and credit score to determine a specific loan amount you qualify for. This often involves a "hard" credit inquiry. A pre-approval letter strengthens your offer when you find a home. Many lenders offer online pre-approval processes that can be quite fast.
Find a Home & Make an Offer: Once pre-approved, you can confidently search for a home. Your pre-approval letter will show sellers you're a serious buyer.
Submit Your Mortgage Application: After your offer is accepted, you'll complete the full mortgage application with your chosen lender. This can often be done online.
Mortgage Underwriting: The lender will verify all your financial details, including income, employment, debts, and assets. They will also conduct a credit check and often require a property appraisal to ensure the home's value aligns with the loan amount.
Closing: This is the final step where you sign all the necessary documents, and the loan funds are disbursed.
Having these ready will significantly speed up the process:
Personal Identification:
Government-issued photo ID (Driver's License, Passport)
Social Security Number
2-year address history
Proof of Income:
Most recent 30 days of pay stubs (showing year-to-date income)
W-2 forms for the past two years
Completed and signed personal tax returns (IRS Form 1040) for the past two years (including all schedules)
If self-employed: Profit & Loss statements, business tax returns for the past 2-3 years, and potentially bank statements showing income.
Documentation of any other income (bonuses, alimony, child support, rental income).
Proof of Assets/Savings:
Bank statements (checking, savings) for the last 2-3 months.
Investment account statements (401k, IRA, stocks, bonds, mutual funds) for the last 2-3 months/quarters.
Documentation for the source of your down payment (if it's a gift, a gift letter from the donor may be required).
Debt Information:
List of current debts (credit cards, auto loans, student loans, other loans).
Mortgage statements, tax bills, and homeowner's insurance (if you currently own a home).
Property Information (once you have an accepted offer):
Fully executed purchase contract.
Estimated homeowners/condo association dues.
Property address and type.
Get pre-qualified very quickly online (sometimes in minutes).
Complete the initial steps of a pre-approval or full application online, uploading documents securely.
Some companies, like Rate.com, advertise "Same Day Mortgage" approvals for qualified customers who submit all required documents within a specific timeframe (e.g., 24 hours of locking a rate). These are still subject to full underwriting.
Gather your documents.
Contact Marcel Garcia & start an online pre-qualification or pre-approval application.
Compare Loan Estimates from at least three different lenders to find the best rates and terms for your situation.