6 Steps to Buying a House | InterLinc Mortgage Services, LLC (2024)

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6 Steps to Buying a House | InterLinc Mortgage Services, LLC? ›

Standards may differ from lender to lender, but there are four core components — the four C's — that lenders will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.

Standards may differ from lender to lender, but there are four core components — the four C's — that lenders will evaluate in determining whether they will make a loan: capacity, capital, collateral and credit.

These three essential factors — Credit, Capacity, and Collateral — play a pivotal role in determining your eligibility and terms for a mortgage.

The mortgage process is complicated but can be broken into a number of steps: pre-approval, house shopping, mortgage application, loan processing, underwriting, and closing. It's a good idea to get pre-approval for a mortgage before you start looking for a property, so you know what you can afford.

What are the 8 steps of the buying process? ›

Check Your Credit Score

That's why the first step is to check your credit score and review your finances. Securing financing isn't always easy. Mortgage lenders will request a credit report and, based on the information found, will use your credit score and financial history to qualify you for a home loan.

The first step to buying a home is getting pre-approved for a mortgage loan. This involves finding a lender, such as a bank or credit union, that you want to work with. To initiate pre-approval, you'll provide the lender with your financial information, including your income, credit history, and debt.

The first step to buying a home is getting pre-approved for a mortgage loan. This involves finding a lender, such as a bank or credit union, that you want to work with. To initiate pre-approval, you'll provide the lender with your financial information, including your income, credit history, and debt.

The minimum credit score needed for most mortgages is typically around 620. However, government-backed mortgages like Federal Housing Administration (FHA) loans typically have lower credit requirements than conventional fixed-rate loans and adjustable-rate mortgages (ARMs).