Applying for a mortgage can be quite intimidating.  With a bit of preparation, you can arrive at your lenders office with all required documentation and be well organized and ready to be evaluated.

To Increase your chances for a successful mortgage approval, first evaluate your credit standing.  If your credit report contains problems or errors, resolve them before applying for a mortgage. You can get one free credit report a year; do it before you apply for your loan to check for errors.

The lender you choose will require a variety of documents from you at the time of application of a home mortgage.

• Mortgage Application:  This form requires detailed information about you: your employment record, the home you want to purchase, your personal finances, etc., of each person who will be listed as a borrower.
• Verification of Income:  You will be required to provide earning statements such as W-2 forms, recent pay stubs, and tax returns for the past two years.  If you are self-employed you will be required to provide profit and loss statements, tax returns for the current year plus the past two years.  You will also be required to provide documentation for any additional income such as social security, child support, bonus, commissions, interest income, veteran’s benefits, etc.
• Verification of Assets:  The lender will require all bank account numbers, the address of your bank branch, plus checking and savings account statements for the previous 2-3 months.  You will be required to furnish a list of savings bonds, stocks or investments and their approximate market value.  You also may be required to furnish copies of title for any motor vehicles that are paid in full.
• Verification of Debts:  The lender may request credit card statements for the past 2-3 billing periods, evidence of mortgage or rental payments, copies of alimony or child support agreements, verification of other debts such as car loans, furniture loans, student loans and personal or co-signed installment loans.  Always provide the creditor’s address and phone numbers.
• Property Information:  A copy of the completed purchase and sale contract, as well as a copy of your canceled deposit check if you made a deposit in escrow to the seller will also be required.
• Origin of Down Payment:  If the down payment is a gift from a relative, you will need a copy of the “gift letter” and a copy of the gift check.  The gift letter is a statement from the person gifting you this money stating that it is a gift and will not have to be repaid.

Your lender will also require a signed release allowing them to verify all your banking information.

With a well organized approach and all your paperwork in order, you can sail through the mortgage application process and get the approval you need to make your new home a reality!!