Five Step Mortgage Process

take stock of your financial situation

Gather your important documents and information:

• Last two recent paycheck stubs
• Last W-2 and tax returns
• Recent bank and other asset statements
• Residential history for past two years
• Current real estate holdings

• Include overtime, bonuses, and commissions
• Calculate your monthly gross income.

• Include car payments, student loans, credit card payments, etc
• Do NOT include “bill payments” such as day care, cell phone, or utilities

determine your monthly house payment

Your “Debt-to-Income Ratio,” or DTI, is determined by taking your total monthly debt payments and dividing by your total monthly income. Most mortgage companies use a DTI of 45% to determine the amount you can borrow. To calculate your home budget:
 

• Multiply your gross monthly income by 45% to get your total max payments.
• Subtract your current monthly debts from your total max payments.
• The resulting number is your new home budget payment.

Make a Plan

During the pre-qualification process, your loan originator will:

• Explain the entire process to you, answering any questions you may have.
• Review your income, assets, debts, and credit to establish where you stand.
• Go over the different mortgage options and help you find one that’s right for you.
• Work with you to set up a financing strategy for buying your new home.

complete a loan application

Go to Shea Mortgage to start your online mortgage application. Once we receive your request, a licensed Shea Mortgage loan originator will contact you to review your information, address your questions or concerns, and provide you with a detailed explanation of mortgage interest rates and closing costs. We’re happy to be able to partner with you on this exciting journey!

make the final preparations

Around 45-60 days prior to your estimated closing date, you’ll want to start getting ready:

• Review your application and let us know if anything has changed.
• Talk to your loan originator about locking in your interest rate.
• If you’re saving funds to close, check with your loan originator to see how you are tracking.
• Select an agent for hazard insurance, and have them contact your loan processor to get set up for closing.

On closing day, bring your photo ID and closing funds to complete your final paperwork. Then there’s only one thing left to do: move in!