How to shop for a mortgage: Step by Step
- Get your documents together- Lenders will need proof of your income, assets, and credit to give you an accurate rate quote. So start compiling the paperwork you’ll need on your application, like bank statements and recent pay stubs
- Get Pre-Approved – Find a lender you like and get a preapproval letter. This allows you ot make an offer a seller will accept. (Getting preapproved doesn’t commit you to that lender – you can swap to another later if you find a lower rate.)
- Shop around with a few lenders: Request quotes from at least 4 lenders plus your existing lender (if any), your bank or credit union and any mortgage brokers you have relationships with
- Compare the quotes you get: We’ll show you how to compare loan estimates and find the best mortgage rate below
- Commit to a Lender: Choose your preferred lender, fill out your mortgage application, and stay on top of admin until closing
- Don’t make any life changes until closing: Try to avoid jobs or becoming unemployed, if at all possible. Don’t open or close credit accounts or go on debt fueled spending sprees. Any of those could reduce your credit score and lenders will routinely check your credit score before closing