What to Know about Applying for a Mortgage

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Misty Boggs
Misty Boggs is the Creative Director at MSGPR. She lives in Angelina County and recently earned her bachelor's degree in Public Relations and a minor in Creative Writing at Stephen F. Austin State University. Between studying and working, she enjoys teaching her niece and nephew the fine art of never growing old.

Although homeownership doesn’t make good financial sense for everyone, some experts say you may be qualified to purchase real estate without realizing it.

“Factor in today’s very low interest rates and current home prices, and affordable mortgages are within reach for many qualified borrowers who may have been hesitant to enter the market,” says Christina Boyle, senior vice president and head of single-family sales and relationship management at Freddie Mac.

After receiving your application, along with the required paycheck stubs, W-2s, bank statements and tax returns, lenders will evaluate the four Cs:

• Capacity: Your income, employment history, savings, and monthly debt payments — such as credit card charges and other financial obligations — help lenders determine whether you have the means to take on a mortgage comfortably.

• Capital: The money and savings you have on hand, plus investments, properties, and other salable assets.

• Collateral: The value of the home that you plan to buy.

• Credit: Your bill- and debt-paying record.

More loan application tips can be found at myhome.freddiemac.com.

“You have choices, so interview lenders to compare costs,” says Boyle, who also recommends getting the process started early. “Getting pre-approved for a loan can help you shop with confidence.”


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