5 Simple Steps to Getting a Mortgage


– [Jeremy] Hey, this is
Jeremy from Shine Insurance and today I’ve got a
special guest on our channel and his name is Ryan Langley. Ryan is the vice president
branch manager of Ruoff Mortgage here in
Bloomington, Indiana he’s a mortgage lender and
he has tons of information for us about the five steps
you need to take before even considering buying a house. So Ryan, thank you so much
for being with us today. – [Ryan] Thanks for havin’ me. – [Jeremy] Okay, so I’m
really excited, I’ve decided I wanna buy a house, and I’m gonna go out, I’m gonna get a realtor, I’m
gonna start lookin’ at houses right away, is that what I should do? – [Ryan] No. (both laugh) – [Jeremy] And so, why not? – [Ryan] So yeah, getting
the realtor is definitely part of the process, you’re
gonna wanna kinda keep that part in mind, up front. But there’s several steps
that you should take prior to goin’ out and rushin’ out and makin’ an offer on a home. The first thing that I
would always advise anybody that comes in the office
that’s just thinkin’ about it, just at the very early stages is to take care of those
things that you know might be an issue in your credit report. So you know that you’ve
got some late pays or you routinely pay late on
credit cards, student loans, auto loans, you name it, on the type of debts that
you may have out there. Make sure you get your house
in order regarding your current debt obligations, and
that doesn’t mean pay them off necessarily, but that definitely
means make sure that you’re current on every single
payment, and that you have been current on them, if you’re
habitually late on your payments each month, that’s often
times viewed as a negative on your credit report, and your
credit score will reflect that. So that would be one of
the very first things that you should think about
if you’re thinkin’ about purchasing a home, is
making sure that everything is up to date, and you’re
payin’ things on time. – [Jeremy] Okay, what’s
the next thing we should do to get our house in order
before buying a house? – [Ryan] The next thing
you should consider is takin’ a look at your finances,
and gettin’ a good idea of what you feel you
may be able to afford. That may not be necessarily
what the lender will tell you later on, but it’s always
helpful for a lender, if we’ve got a general sense of the price range that you’re lookin’ in. You know, for a first-time
home buyers, it obviously it just depends on your
current income situation, depends on if you’re single,
depends on if you’ve got multiple incomes in the
household, there’s a lot of factors that you would take
into consideration yourself and there’s all kinds of
calculators out there online that you can log on and see
to get a general sense of what a payment may look like. And a very good starting spot,
would be what you’re paying in rent each month. Are you strugglin’ to make that
payment as it is right now? Or are you making it
easily and you can afford some more payment? So a very good starting spot
would be to kinda look at where you’re at on your rent
payments, versus what you might be able to afford on a
monthly basis on a mortgage. – [Jeremy] Okay, cool, if I
wanted to look up one of those calculators, what might I
choose for my Google search? – [Ryan] You can go to
Ruoff.com, we’ve got calculators on our website that you can
use, and that’s typically where I would direct you to
go and find a good calculator to use, you can also use any
numerous websites, Bankrate.com There’s a lot of other ones out there that would be sufficient. – [Jeremy] Okay, so,
mortgage calculator.’ – [Ryan] You can type
in ‘mortgage calculator’ and you’ll get 100 different
options on finding it and they’re all gonna
be accurate, you know, you put in, for the most part,
most first time home buyers are gonna be looking for
a 30 year fixed mortgage, so you type in ‘mortgage
calculator’ use the rate that they’ve got in
there just for an example that doesn’t mean what
the rates are currently, but that does give you a general sense of where you would be on a monthly payment. – [Jeremy] Okay. So I’m
gonna get my credit in order, I’m gonna look at what I
might be able to do as far as a payment goes using my
rent as a great example of a place to start, and then
Ruoff.com mortgage calculator would be another wonderful
place to kinda figure that out. Okay, that’s the first
two, what’s the next thing I should do? – [Ryan] Next thing you
should do, before reaching out to the lender, which will
be step four, but before we get to step four, step three is start thinkin’ about the
preliminary documentation. Yes, it does take a lot of paperwork, or what can feel like a
lot of paperwork at times, to get a mortgage, to obtain a mortgage. So, you know, the base
amount of documentation that almost every single
mortgage lender will ask you for would be your driver’s
license, or passport your last two years’ federal tax returns, last two years’ W-2s, if you received W-2s your most recent pay stub,
and your last two months complete bank statements
that may show any assets that you have available for down payment so that would be the core group
of items that you would need to get, of course it will
always depend on your situation depends on if you’re self-employed,
depends on if you’ve got additional businesses
that are attached to that. So those things can change,
but that would be a very good list of things that you should
think about just getting up front, before even callin’
the mortgage loan officer. – [Jeremy] Cool, and if
you didn’t write that down, we put it down in the notes
right below this video you can look at the list
of things that you should have ready before you even
call a mortgage lender. Okay, so that was step
three, get your documentation in order, so step four, you’ve
already kind of alluded to, let’s go for it! – [Ryan] Step four is when you’re calling the mortgage lender, and
you set an appointment, often times, as a first
time home buyer, it’s it would be helpful to meet
face to face, but anymore in this day of age, where we
can access anything online, the vast majority of
mortgage lenders are gonna have that option for
you to go out and apply for a mortgage online. Though anytime a first time
home buyer, if you’re lookin’ the mortgage lending process
has become so complex and there’s so many regulations
and so many documents out there, anytime that
you can meet face to face with a lender, I would
suggest that you do so, so that they can help
thoroughly explain the costs and the fees and everything
that’s associated with the process, but more often
than not, the mortgage pre-approval process should
take anywhere from an hour to an hour and a half,
shouldn’t take much more time than that, and if it
does, you can go back to our previous video, and hear
what I have to say about the communication piece. (both laugh) We love coming back to communication. – [Jeremy] Yeah, and
that video is the three different things to
think about when you’re choosing a mortgage lender,
and you can see that on the Shine Insurance
YouTube channel as well. So step four, getting,
going ahead and contacting the mortgage broker and getting
pre-approved for a loan. Okay, what’s step five? – [Ryan] Well, you know,
step five what I did have is, you wanna save for a
down payment, well that might not be necessarily true
for everybody’s scenario. We do have loan programs
where you can have 0% down, loan programs where it only
takes 3% or three and a half and that money may be
coming from a relative in the form of a gift. But I would say the fifth and final thing that we should discuss,
leading up to the mortgage is get a general sense of who
you’re gonna wanna work with as a realtor, if you’re
gonna be shopping for homes, and also get a general sense
in your homeowners insurance which is a very important piece
that always, or oftentimes not always, but oftentimes
overlooked in the beginning stages of the process,
is you wanna kinda have a general idea of who you may
wanna work, and I would always always encourage you to use
a local insurance company versus goin’ online,
just like I would always encourage you to use a
local lender, versus going online to find a lender. – [Jeremy] For the same
reasons, because, you know, the advice is better,
the contact is better, the communication is
better, and again that’s true for I think both sides. Okay, so step five was… – [Ryan] So step five would
be to get a general sense of who you’re gonna use as a
realtor, real estate agent, and who you would be using
for your homeowners insurance. – [Jeremy] Okay, alright, cool.
Well that sounds really good so all those things, and I
think what’s so great about talking about this right
now, is both you and I see, as we see people purchasing
homes, that they don’t do a lot of this stuff ahead of time. And then it becomes a
disappointing scenario, instead of, I really think
buying a house should be fun but it can very quickly
turn into a lot of work, tragedy, disappointment, things
of that nature, and I think the five steps you’ve talked
to us about today will help folks to avoid that. – [Ryan] Absolutely. – [Jeremy] Okay, so if folks
want to come and find you for a mortgage, how
can they do that, Ryan? – [Ryan] Best way to
contact me would be to call the phone number here in Bloomington, which is 812-650-3800 I can also be found
online at www.ruoff.com that’s R-U-O-F-F.com, or
send an email directly to [email protected] – [Jeremy] Alright, well
thank you so much for taking some time out of your
schedule today to help us to understand mortgages
a little bit better. – [Ryan] Thank you for havin’ me. – [Jeremy] If you enjoyed
this video and you feel like you wanna learn more about
the new home buying process, we’ve got another perfect video for you. If you go to our YouTube
channel and check out the New Home Buyers Guide, it
lays out from beginning to end the whole process, from thinking
that you wanna buy a house all the way through the purchase
process, and the closing and even talks a little bit
about your mortgage payment afterwards, so definitely
go and check that video out and then of course please
subscribe to our channel, We love to put out great
information for ya, we’re happy to have it in your
inbox as soon as it goes live and you can check it out and
learn from it and of course if you feel like great things
are happening at this channel please do share on your
social networks, alright, until the next time, have a wonderful day. (rock music)

Paul Whisler

4 Comments

  1. I received a check for my last two years tax return. Do they need the pay stubs or will I find how much I got back on the IRS website?

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