While buying a home is a huge decision involving careful planning and preparation, applying for a mortgage can be
surprisingly easy. Once you break the process down into its simplest steps, you’ll feel much more confident in
navigating the world of mortgage applications. 

Prequalification & preapproval

Getting prequalified and preapproved for a mortgage should be your first step in the process.

To be prequalified for a mortgage, you typically need to only fill out a simple form (sometimes directly through a
lender’s website). On this form, you won’t need to provide specifics or official documents.

To get preapproved, you’ll have to fill out an official mortgage application. Your lender of choice will request a
few pieces of information from you, including tax returns, proof of income and a list of your debts. 

Credit check

As part of your preapproval, lenders will also run a credit check. This is a type of “hard credit inquiry” detailing
your payment history, number of open accounts and other factors making up your credit score.

Typically, the higher score you have, the better interest rate you’ll receive. Building your credit takes time, so
the longer you can maintain good habits, the better your score – and interest rates – will be. 

Additional paperwork required for mortgage applications

Not every mortgage application will have the same requirements. For instance, you may need to provide different forms
of income verification depending on the work you do. Each potential borrower has different debts, assets and
potential liabilities. If you apply jointly with a partner, you’ll also have to take their financial stats into
account.

Even when broken into three steps, mortgage applications can seem daunting. However, knowing the basics will help you
along the way. With a solid understanding of the pieces, you’ll have no trouble completing the puzzle of the
mortgage application process.