How to Prepare Your Finances for a Mortgage Application

Applying for a Mortgage Loan is a big step, and preparation is everything. Whether you're getting ready to buy your first home or exploring new options in Tennessee, knowing what to expect can make the process more manageable— and even a little exciting. From your credit score to your paperwork, here’s a checklist of what to do before you submit that Mortgage Loan application—and why working with a local credit union like Family Advantage FCU makes a difference.

Know Where You Stand Financially

Before you start house hunting, take an honest look at your financial situation. Lenders will do the same, so it helps to be a few steps ahead.

Start with:

  • Your credit score: Most Mortgage lenders look for a credit score of at least 620, but higher scores can help you qualify for better rates.

  • Debt-to-income ratio (DTI): This measures how much of your income goes toward debt. Aim for a DTI below 43%, although a lower value is even better.

  • Savings: Not just for the down payment—there are also closing costs, moving expenses, and future maintenance to think about.

Create a Realistic Budget

Once you’ve crunched the numbers, figure out what kind of monthly payment you can genuinely afford, without stretching too thin.

Ask yourself:

  • What are your current monthly expenses?

  • Do you plan to expand your family or change jobs soon?

  • Are you comfortable with a fixed or variable-rate Mortgage Loan?

Remember: Just because you qualify for a certain amount doesn’t mean you have to borrow it. Be practical—it’ll make homeownership far more enjoyable.

Save for More Than Just a Down Payment

When people think about buying a home, they often focus on saving for the down payment, but that’s not the only upfront cost.

Other expenses to plan for include:

  • Closing costs (typically 2-5% of the loan amount)

  • Home inspection fees

  • Moving expenses

  • Initial repairs or upgrades

Even if you qualify for a low-down-payment Mortgage, having extra savings on hand will help you avoid financial surprises.

Choose the Right Mortgage Lender

Big banks aren’t your only option when it comes to buying a home. A local credit union, such as Family Advantage FCU, can offer competitive rates, personalized service, and local insight that national lenders cannot match.

Here’s why Tennessee buyers love working with us:

  • We keep things personal—no call centers or confusing hoops

  • Our team knows the local market

  • We offer conventional Mortgages with flexible terms and no prepayment penalties

  • We’re not-for-profit, so your needs come first

Ready to connect in person? Visit our Spring Hill or Columbia branch to get started.

Get Pre-Approved

Pre-approval is a decisive move. It shows sellers that you’re a serious buyer,\ and gives you a realistic idea of what you can afford.

When you get pre-approved with Family Advantage FCU, you’ll work with a local team that understands the Tennessee market and puts your best interest first. Plus, our Mortgage lenders are just a phone call or visit away if you ever have questions. Explore our Mortgage options here.

Avoid Big Financial Changes

Once you’re preparing to apply for a Mortgage Loan, stability is key. Avoid making any significant financial moves like:

  • Changing jobs

  • Taking on new loans

  • Making large credit card purchases

  • Co-signing for anyone else

Lenders want to see consistency. Keep your financial activity simple until your loan is finalized.

Ready to Apply for a Mortgage?

Getting your finances in order before applying for a Mortgage Loan doesn’t have to feel overwhelming. With the right planning (and a helpful team), you can feel confident in your next move.

At Family Advantage FCU, we’re here to help you prepare, apply, and settle into the right Mortgage, right here in Tennessee.

Learn more about our Mortgage Loan options or stop by one of our convenient Spring Hill or Columbia branches to get started.

Let’s make your next move the right one, with a Mortgage lender that’s right around the corner.

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