Your 5-Step Guide to Mortgage Success

The journey to homeownership is a profound milestone—a complex dance of financial planning, personal aspiration, and strategic decision-making. For many, the path begins with a seemingly intimidating process: securing a mortgage. This financial cornerstone can feel like deciphering an intricate puzzle, especially for first-time homebuyers standing at the threshold of one of life's most significant investments.

But here's the encouraging truth: With the right guidance, knowledge, and preparation, what seems overwhelming can become an empowering, manageable experience. This guide will demystify the mortgage process, breaking down complex concepts into actionable steps, and providing you with the confidence to move forward in your homeownership journey.

Step 1: Pre-Approval

Before you start house hunting, obtaining a mortgage pre-approval is essential. Here's why:

Budget clarity: Pre-approval provides a realistic picture of your homebuying budget
Loan type identification: It helps determine the most suitable loan for your financial situation
Competitive edge: Sellers often prefer buyers with pre-approval, as it demonstrates financial readiness
Faster closing: Pre-approval can accelerate the overall mortgage process

How Do I Get Pre-Approved?

Contact Ruoff: Reach out to one of our mortgage experts, who will guide you through the process from start to finish
Gather necessary documents: Your loan officer will provide a checklist, typically including paystubs, work history, and co-borrower information if applicable
Debt-to-income (DTI) ratio assessment: Your loan officer will review your credit history and debts to determine your borrowing capacity

Remember, early pre-approval can prevent missing out on your dream home. To get a head start, consider using Ruoff's Affordability Calculator for preliminary planning.

Step 2: Shopping

Regarding the homebuying process, step two is everybody's favorite part. With so many online searches at your fingertips, hunting for a house has never been easier. However, in today's competitive market, where prices are at an all-time high, interested buyers need to act fast. That three-story Tudor with the spacious backyard and privacy fence won't come up in searches for long. Before hitting the high-tech highway, it's crucial to get yourself a real estate agent. Having a knowledgeable third party in your corner can make all the difference. Your real estate agent will be familiar with the local market, including property values and neighborhood features, helping to point you in the right direction, save time, and reduce stress in this fast-paced environment.

Step 3: Tackling the Mortgage Application

If you are ready to roll, we suggest first taking some time to compile all the necessary documents you will need to complete the application. For many buyers, most of these documents would have been gathered during the pre-approval process, but if not, this is the step where you will want to get your ducks in a row as your loan officer will likely need the following items in order to finalize the application:

Details on property to be purchased including address, price, and any contingencies
Proof of employment including title, length of employment, address, and phone numbers
Proof of income for the past 2 years (W2 or other relevant end-of-year tax forms as well as recent pay stubs)
Bank statements, including any investments, retirement accounts, and monetary gifts* needed to secure the mortgage
Proof of payment amounts and payoffs on all current debt such as auto loans, mortgages, credit cards, liens, student loans, etc.

One important thing to note is that if you receive a monetary gift, all home loans require that a gift letter be filled out and signed by all parties. Gifts of equity require additional documentation to verify the credit on the closing disclosure. Each loan has specific requirements for documenting gifted funds, which may need to be properly sourced and verified—cash is not an acceptable form of gift funds.

You can manage all the steps of the mortgage process with your loan officer in Loan Butler—our innovative digital application where you can follow along with your loan milestones, upload documents, and more. If you haven’t begun the pre-approval process, you can also start your application here as well.

Step 4: Let Us Do Our Thing

Once all the paperwork has been handed over to your loan officer, it will be reviewed, processed, and passed along to underwriting. You will be contacted should your loan officer require any additional details or documentation.

The entire processing and underwriting step will take about 15 days with Ruoff, so this is a great time for you to get ready for closing, secure your down payment, tidy up loose ends on a property you might be selling, and start making a mental list for moving day.

Step 5: Preparing to Close

You’re almost to the finish line! Your loan officer will be in contact regarding a closing date. At closing, all down payment funds must be submitted, including any monetary gifts*, as well as applicable fees and other closing costs. Additionally, all insurance policies must be decided upon and ready to go. It is also customary that a final walk-through will take place to ensure that any conditional requirements were met by the seller (such as fixes to issues that came up during inspection). Your real estate agent will be able to walk you through this. Then, all that is left to do is sign on the dotted line.

You’re All Set

The path to homeownership is not just about securing a loan; it's about laying the foundation for your future, creating a space to call your own, and achieving a significant life milestone. With the right preparation, guidance from experienced Ruoff loan officers and a clear understanding of each step, you can approach this process with confidence and excitement. Remember, every signature, every document, and every decision brings you closer to the moment when you'll turn the key to your new home. As you embark on this journey, know that you're not just buying a house – you're investing in your dreams, your family's future, and a place where memories will be made for years to come. Ready to take the next step? Contact one of our loan officers today.

The average Clear to Close time is dependent on loan type, proper documentation, and other qualifying factors. Loan decision is subject to satisfactory appraisal, title review, and no change to financial condition. This is not an offer for extension of credit or a commitment to lend. Some restrictions may apply. Ruoff Mortgage NMLS #141868. Equal Housing Lender. Ruoff Mortgage Company, Inc. d/b/a Ruoff Mortgage is an Indiana corporation. For complete licensing information visit: http://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/141868