Getting a mortgage on your modular home without having a good knowledge on what you are doing will certainly cost you thousands of your valuable savings. So, make sure to thoroughly understand how to get a modular home mortgage, as it will help you to steer away from potential dangers.
If you have decided to build a modular home, then you will have to initially set a budget and come with a rough estimate of what you are willing to spend on your new home. Consulting with your homebuilder will help you to know what sort of modular home you can build with the budget. However, if you are planning to apply for mortgage, then here are a few simple steps that you should follow.
Gather your Documents
The first and most important thing to do before applying for a mortgage is to gather all your important documents and arrange them in order. If you have not meticulously kept everything in the proper place, then gathering your documents may take a little time. Some of the documents that you will need for applying a mortgage include:
- Tax returns of the last two years;
- 2 years W-2’s and current pay stubs;
- A complete list of you entire assets; and
- An elaborate list of your all debts.
The next step is to get prequalified for the mortgage. Your lending institution or bank will use the information from your documents and inform you the rate that they can offer. Prequalification rates are usually a lot less precise than preapproval rate, which means that the rate they tell you is actually non-binding for both you and the lender.
Once you choose a bank or a money lending institution who gives you a good rate, then the next step is to get preapproved. You will need to have a hard check on your credit score for getting a preapproval from a lending institution.
If you have a modular mortgage preapproval letter with you, then modular homebuilders will realize the fact that you are a serious modular homebuyer. They will then help you to construct an elegant modular home of your dreams without disturbing the budget.