Price Range
Home ownership is within many consumers' reach. And the first step toward finding the right mortgage is to determine how much you can afford to pay each month. This saves you time by allowing you to focus on homes in your price range. It can also help you plan other costs you can expect to pay, such as closing fees, escrow accounts, etc.

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Loan Options
There are many different types of mortgages to choose from. Which one is right for you? That depends. When reviewing your options, you should consider your current financial picture, how your finances might change in the future, how long you intend to remain in the home, and how comfortable you are with fluctuating mortgage payments.

Here are three basic types of home mortgages:

Fixed-Rate Mortgages: Security and Stability
Fixed-rate mortgages remain the most popular type. With these loans, the interest rate is fixed for the life of the mortgage, so your monthly payments never change. 

Adjustable-Rate Mortgages: Flexibility and Control
Adjustable-rate mortgages (ARMs) generally start out with an interest rate lower than a fixed-rate loan. This saves you money early on, and may help you qualify for a more expensive home. However, your rate is tied to a market interest rate. As the market rate goes up or down, your payments will also change at each scheduled adjustment period. (There are "rate caps" to limit the amount your mortgage can go up or down.) 

Special Mortgage Programs: For Unique Borrowing Needs
Magellan offers a variety of home financing options for customers with special considerations. These may include special credit needs, FHA or VA loans, low down payments options or affordable home loan programs. 

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Get Orginized
You've identified your price range and have learned about the mortgage options that may be right for you. Now it's time to gather all the information and supporting documentation you'll need to apply for a mortgage preapproval or to submit your mortgage application. Getting ready ahead of time will help the process move along quickly and smoothly.

Arrange your paperwork
Here are some of the documents you may need to prepare for the home financing process:

• Your social security number (or proof of permanent residency)
• Pay stubs for the last two months
• W-2 forms for the past two years
• Bank statements for the past 2-3 months
• 1 to 2 years of Federal tax returns
• A signed contract of sale (if you've already chosen your new home)

You can also print our Applicant's Checklist for more complete details on what you will need. Be sure to ask about additional requirements if you're self-employed, or buying a co-op or condominium

Order a copy of your credit report
Your credit report will be ordered by Magellan as part of your application process; however, if you review your credit report and address any errors before you apply, you can avoid potential delays during processing.

Remember, when assessing your financial picture, be as honest and thorough as possible. That's the best way to secure the mortgage that's right for you. There are mortgages for just about every buyer and situation.

To learn more about mortgage terms and definitions, see our Mortgage Terms.

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Preapproved

If you've already found the home you want to buy, you can skip ahead to Step 5 and apply for your mortgage directly. If not, consider getting preapproved for your mortgage before you start shopping for a home. Getting preapproved by Magellan can give you a significant advantage while you're shopping for a home.

Magellan's preapproval program. With a preapproval, you get written confirmation of a maximum loan amount - so you know just how much you will be able to finance. This confirmation can help increase your bargaining power with the seller, since it's like having "cash-in-hand." And, once you find the perfect home, your transaction should close more quickly.

Magellan also helps you to:

• Choose the mortgage that's right for you
• Receive a preapproval certificate within 3 business days
• Shop for your home with confidence

To find out what happens when you submit an application for preapproval, jump ahead to Step 5.

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When you Apply

Once your offer has been accepted by the seller, a Mortgage professional will assist you with the details of applying and closing (including a satisfactory property appraisal). You can expect personalized and convenient service from your local Mortgage expert from start to finish. Magellan Mortgage professionals will answer your questions about the different types of mortgages available, and offer advice on rates, your needs, your buying power, etc. You'll need to provide them with information on your income, credit history, debts, and liquid assets.

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Close the Loan

Congratulations!

You're about to become a homeowner. The "closing" is when the finalized loan documents are signed, and the mortgage funds are disbursed.

Here are some things you can do ahead of time to ensure a successful closing:

• Fulfill any conditions specified by the Underwriter at the time of your loan approval.
• Obtain homeowner's insurance. This required insurance protects you against loss or damage due to theft, fire, or certain weather-related hazards. In some areas, it may also be necessary to obtain flood insurance.
• Resolve title questions. If your title search turned up other liens on the property, these will need to be resolved before closing can occur.
• Conduct a final walk-through of the home to ensure any agreed upon repairs have been completed by the seller.
• Review the final estimates of your closing costs.
• Prepare a certified check or money order - not a personal check - to cover your down payment and closing costs.
• Make sure you can meet the conditions of your mortgage commitment.

At the closing, you'll receive and review some very important documents. This is not the time to be shy! If you have questions about the paperwork, just ask. And if you spot an error, say so - and don't sign the document until the issue is resolved.

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