How to Qualify for a 15-Year Fixed-rate Mortgage
If you qualify for a 15-year fixed-rate mortgage loan, not only will you pay off your home loan sooner but you'll spend thousands of dollars less in interest than you would on a 30-year fixed-rate mortgage. Your monthly payments will be higher, but if you can afford them, a 15-year mortgage makes financial sense. You'll need good credit, a strong income and only a moderate amount of revolving debt to land one of these loans.
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Things You'll Need
- Copies of your two most recent paychecks
- Copies of your most recent bank savings and checking account statements
- The value of your other assets
- Copies of your last two income tax returns
- Copies of your retirement savings account statements
Instructions
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Qualifying
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1
Search the Internet or phone book for mortgage lenders. Call several and ask for their rates for 15-year fixed-rate mortgages as the rates may vary. Choose to work with the mortgage lender with whom you feel most comfortable.
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2
Fill out that mortgage lender's Uniform Residential Loan Application form, also known as a 1003 form. This form requires you to list basic information about your yearly salary, debt level and employment status. When complete, email, fax or mail this form to your lender.
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3
Send your lender copies of the paperwork that offers proof of the financial information you entered on the 1003 form. This paperwork includes copies of your last two paychecks, your last two income tax returns, your bank savings and checking account statements, and copies of any retirement savings account statements.
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4
Give your lender authority to run a credit check on you. The lender will also have to run a credit check on your spouse or partner if you are acting as co-borrowers. A high credit score will qualify you for the lowest interest rates. A credit score that's too low might mean that you won't even qualify for a loan.
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5
Wait for a pre-approval. If your lender is comfortable with your financial status, the mortgage company will pre-approve you for a 15-year fixed-rate mortgage loan of a specific amount. This means that once you find a house and sign a contract, your mortgage money will be available to let you close the purchase of the residence.
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Tips & Warnings
Always get pre-approved for your 15-year mortgage loan before you begin searching for a new home. Once you're pre-approved, you'll know exactly how much house you can afford. You won't waste time looking at homes outside your budget. Having loan money pre-approved also makes you a more attractive buyer to sellers.
If you get a pre-approval, don't feel obligated to take out a mortgage loan with that lender. A pre-approval does not require you to eventually work with that lender.
