5 Steps to Obtaining a Mortgage

The Confident Buyer Series – Week 5 – 5 Steps to Obtaining a Mortgage

This weekly series walks you through the entire home-buying journey—from your first steps to closing day—and beyond. Whether you’re buying for the first time or jumping back in after renting or relocating, this guide is your roadmap to a confident, successful purchase in Northern Colorado. This week, we’re discussing the 5 steps to obtaining a mortgage.

Getting a mortgage doesn’t have to be stressful or confusing—even with all the options out there. These days, it’s far from “one-size-fits-all,” which is great news for buyers with a wide range of financial situations, timelines, and goals.

Still, it’s important to understand how the process works and what lenders are looking for so you can prepare accordingly. With the right knowledge (and a solid team), your financing can be one of the smoothest parts of the buying experience.Here are the 5 essential steps to securing the right mortgage for your needs:

1. Know what you can comfortably afford.

Before you ever fill out an application, you need to ask yourself one key question:
“What am I truly comfortable paying each month for housing?”

This is different from the amount a lender might approve you for—which could be higher than your comfort zone.

If you haven’t already, go back and review Do the Math – A Mortgage You Can Afford, which walks you through how to build your budget from the monthly payment first, and then work backward into a purchase price.

This is especially important in Northern Colorado, where home prices can vary widely depending on location, HOA dues, and property taxes. I always recommend budgeting realistically before falling in love with a specific home.

2. Shop around for lenders.

You don’t have to work with the first lender you talk to—and you shouldn’t. It’s smart to interview a few different loan officers (from big banks, credit unions, and mortgage brokers) to compare not only rates and fees, but also responsiveness and loan product knowledge.Your agent (hopefully me!) can refer you to local lenders who’ve helped past clients secure great terms—and actually close on time.

Real example: One of my recent buyers saved over $200/month by switching lenders midway through pre-approval when we discovered a program better aligned with their goals.

3. Understand your loan options.

FHA? VA? Conventional? Local assistance programs?
Your loan officer should take the time to explain what’s available and which options make the most sense based on your credit, income, and down payment.

Don’t be afraid to ask questions or ask for a comparison of multiple programs. What works for one buyer might not be the best fit for you—especially with today’s interest rate fluctuations.

Bonus: There are special homebuyer programs available in Colorado (some with down payment assistance or reduced mortgage insurance), and I can help connect you to the right experts.

4. Get pre-approved—not just pre-qualified.

A pre-approval is a formal review of your income, credit, and assets. It tells you (and sellers) exactly how much you can borrow.

Pre-approval puts you in a stronger position when it’s time to make an offer—especially in competitive areas like Fort Collins or Loveland, where we sometimes see multiple offers within days.

You’ll need to provide:

• Pay stubs or proof of income
• Tax returns and W-2s (or 1099s if self-employed)
• Bank statements
• Authorization for a credit check

Let your lender know upfront that you want a full pre-approval letter so you can shop with confidence.

5. Lock in your lender once you’re under contract.

Once your offer is accepted, it’s time to choose your lender and finalize your loan. This is when you’ll “lock in” your interest rate and commit to one lender.From there, your lender will order an appraisal on the home and begin processing your final loan documents. The key here? Speed and communication. Be prompt in submitting anything they ask for, and let your agent know if anything changes financially.

Let’s talk next steps.

If you’re unsure where to begin or want recommendations for trustworthy local lenders with great service and competitive rates, email me or click here to find a time to chat. I’ll match you with a few that I’ve personally worked with and trust.

Buying a home doesn’t have to be overwhelming—especially when you have the right team in place. I’ve got you covered every step of the way.

Next up in the Confident Buyer Series?
It’s the Fun “House Hunting” Guide. You’ll learn how to shop strategically (and avoid burnout), what to bring to showings, and how to stay focused on your must-haves. Don’t miss it!