How do you get a loan for a house?


Quick Answer

To get a house loan, improve your credit score, choose the best loan option, shop around, and get preapproved. Have your paperwork ready for the best chance of securing a house loan. It is a good idea to consult a financial adviser to make the process easier.

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Full Answer

  1. Improve your credit score

    Check your credit report for the last six months to see where you stand financially. Improve your credit score to secure a good rate from your lender.

  2. Choose the best loan

    Select a shorter loan where possible because these normally have lower interest rates. You stand to save significantly on a 15-year mortgage over a 30-year mortgage for example. Look into fixed mortgages and adjustable-rate mortgages, and choose the best option for your circumstances.

  3. Shop around

    Look into several lenders before making a decision. Compare interest rates, appraisal fees, application fees and other closing costs. Weigh your options before choosing one you are most comfortable with. Work with your real estate agent for professional advice.

  4. Get preapproved

    Prepare documentation showing your income, assets and any debts. Show these to your lender to get preapproved. A preapproval letter shows real estate agents and sellers that you are a serious buyer.

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