Preparing for a Mortgage
Preparing for a Mortgage
Whether you’re a first-time homebuyer or looking to refinance, preparing for a mortgage is one
of the most important steps in your financial journey. Understanding what lenders look for and
getting your finances in order can help you qualify for better rates—and close with confidence.
1. Check Your Credit Score
Your credit score plays a major role in your mortgage eligibility and interest rate. Before applying:
- Review your credit reports from Equifax, Experian, and TransUnion.
- Dispute any errors you find.
- Work to improve your score by paying down debts and making on-time payments.
2. Understand Your Budget
Know how much home you can realistically afford. Lenders typically follow the 28/36 rule:
- No more than 28% of your gross income for housing expenses.
- No more than 36% for total debt obligations.
- Use our Mortgage Calculator to estimate your monthly payments.
3. Save for a Down Payment
Depending on the loan type, down payments typically range from 3% to 20%:
- Conventional loans: Often require 5–20%.
Don’t forget to factor in closing costs, which can be 2–5% of the home price.
4. Get Pre-Approved
Getting pre-approved shows sellers you’re serious and helps you shop within your price range.
You’ll need:
- Proof of income (W-2s, pay stubs)
- Employment verification
- Bank statements
- Tax returns
- Credit information
5. Avoid Major Financial Changes
Lenders want financial stability. Avoid:
- Switching jobs
- Opening new credit lines
- Making large purchases (like a car)
These can affect your credit score or debt-to-income ratio.
Need Help? Talk to a Mortgage Expert
Have questions or ready to get started? Our mortgage specialists are here to guide you every step
of the way.
Mortgage Loan Coordinator
Serves Both Solidarity Locations
mortgages@solfcu.org
(765) 453-4020 ext 1344
Angela Rhees
Loan Originators
Main Office Location
201 E Southway Blvd. Rd.
Kokomo, IN 46902
mortgages@solfcu.org
(765) 453-4020 ext.1345
Erica Foster
Main Office Location
201 E Southway Blvd. Rd.
Kokomo, IN 46902
mortgages@solfcu.org
(765) 453-4020 ext.1343
Miranda Lindsey
Branch Location
214 N. Dixon
Kokomo, IN 46901
mortgages@solfcu.org
(765) 453-4020 ext.1348
Kathleen Walker
