In order to apply for a mortgage you will need to do a bit of footwork to collect documents and clear up your credit report before completing an application. Most importantly, you need to figure out How Much Mortgage Can I Afford ? so that you don’t set yourself up for a rejection or worse, a future foreclosure.

You will need to find either a mortgage lender or a broker. Brokers are independent agents who work with a variety of lenders. They can help you understand the mortgage process and put together your application. They should work to get you the best mortgage rate and type of mortgage for your individual circumstances. Brokers can also advise you should your first application be rejected. A lender will be limited to the products offered by their employer, but they will know those products very well.

Once you submit your application for a specific mortgage product, the interest rate is locked. Since interest rates are subject to daily market changes, you want to be selective about when you apply. You will usually have a grace period after submitting the application to get in all your supporting documents, including appraisals, pay stubs, and other financial papers.

The lender will review your application and may request additional documents. They will run a credit report for all borrowers and will calculate debt and income ratios in order to determine whether to approve the mortgage. If a mortgage is not outright approved, it may be conditionally approved, which means that you will have to submit additional proofs or put up more money. In some cases the lender can deny a mortgage but suggest that you apply for a different product or terms that they feel better suit your financial situation.