Ready to Buy a New Home in Southern Maryland?

A mortgage is a loan used to purchase or maintain a home, building or other property. The property serves as collateral for the loan, which means the lender may take possession of it if the borrower fails to meet the repayment terms.

A mortgage pre-approval is different from a final loan approval. A lender reviews your income, assets, debts, credit history and other financial details to estimate how much you may be qualified to borrow. The lender then provides a pre-approval letter, although final approval remains subject to verification and the property meeting the lender’s requirements.

To obtain a mortgage pre-approval, you may need to provide recent pay stubs, bank statements, identification, permission for a credit check, information about your down payment and copies of personal or business tax returns. Requirements vary by lender and by the complexity of your finances.

After reviewing this information, the lender may give you a pre-approval letter. These letters often have an expiration date because your income, debts, credit score and available funds can change.

Getting pre-approved before shopping for a home can help you understand your approximate price range and identify potential credit or financial issues early. It can also show sellers that you have already taken an important step toward obtaining financing, which may help when competing for a property.

Our Southern Maryland homebuyer resources can help you understand the next steps. You can also read our guide to understanding pre-approval letters.

What You’ll Need When Applying for a Home Loan

The mortgage application process may be completed quickly or take longer depending on the lender, your loan program and the complexity of your finances. Your lender may request the following information:

• The amount you want to borrow, the proposed repayment period and information about the available interest rate.
• The property address and a description of the property, when available.
• The purpose of the loan, such as a purchase, new construction, repair or refinance.
• Whether the property will be your primary residence, second home or investment property.
• Personal identification details, including your full name, date of birth, Social Security number, marital status, number of dependants and address history.
• The names of your previous and current employers, your job title and your monthly income.
• Documentation of income from wages, bonuses, commissions, overtime, alimony or other qualifying sources.
• Your current monthly housing expenses, including rent, property taxes, insurance and association dues when applicable.
• A list of your assets and recent bank statements showing funds available for the down payment, closing costs and financial reserves.
• A list of your liabilities, including credit cards, vehicle loans, student loans and other outstanding debts.
• An overview of the proposed transaction, including the purchase price, loan amount, down payment and estimated closing costs.
• Information about judgments, liens, previous bankruptcies, foreclosures, pending lawsuits or delinquent debts.

Learn more about saving for your down payment before you begin the mortgage process.

After submitting your application and supporting documents, the lender will review your information and let you know whether the application has been approved, denied or requires additional documentation.

Before selecting a lender, read our guide to choosing a mortgage lender.

You can also learn more about credit scores, loans and mortgages.

Pre-Qualify for Your New Home

Complete the pre-qualification form below to take the next step toward buying a home in Southern Maryland.