How to prepare your finances and compare lenders before shopping.
Compare mortgage providers
Ask more than one lender about loan options, rates, fees, estimated cash to close, and whether you qualify for programs that fit your situation.
Gather common paperwork
Lenders may request proof of income, bank statements, employment information, identification, debt details, and authorization to review credit.
Separate prequalification from preapproval
The meaning and documentation requirements can vary by lender. Ask what the lender has actually verified and what remains conditional.
Calculate the true carrying cost
Factor in mortgage payment, property taxes, insurance, utilities, maintenance, and any HOA fees. An approval amount is not a spending recommendation.
Keep your lender updated
Large purchases, employment changes, new debt, and unexplained deposits can affect underwriting. Ask your loan officer before making major financial changes.
Questions worth asking
- How much cash will I need before and at closing?
- How do the Loan Estimates compare across lenders?
- What conditions remain before final approval?