Applying For a Mortgage

Obtaining a mortgage is an essential part of the home buying process for the majority of people. While the process may seem daunting, it is important to follow the directions and guidelines carefully in order to prevent any delays in being approved. You can choose to work with your bank, or use the services of a mortgage broker. The process of applying for a mortgage loan is virtually the same in both cases.

Check Out Your Credit Report

Lending institutions rely on the information provided in your credit report to assess your credit worthiness. Before applying for a mortgage, take the time to carefully inspect your credit report from each credit reporting agency. It is not uncommon for there to be errors and incorrect information contained within a credit report- you can contact the reporting agency to have these mistakes fixed.

Fill Out the Application and Provide Request Documents

A mortgage application is used to collect basic information about you, such as your name, current address, social security number, and best way to contact you. They will ask for your employment information, length of employment, your current position, and an HR contact to verify employment with the company. When you fill out your application you will also be asked to submit a variety of documents. These documents include:

• W-2 forms for the last 2 years
• Personal tax returns (all schedules) for the last two years
• Corporate tax returns if applicable (all schedules, including K-1 statements)
• Most recent paycheck stub
• Last 2 months of bank statements for all checking, savings, money market, 401k accounts - all numbered pages to each statement, even if they are blank
• Driver's license or State ID
• Social Security Card

Verification

The lending institution will verify all of the information that you provide them with. Your credit reports will be brought up, and your income and employment will be verified. This process can take up to several weeks, depending on the type of mortgage loan you have chosen.

Decision By Lender

The lender you are working with will contact you to inform you of whether you were approved or denied for a mortgage loan. If you are approved, you will be told how much you qualify for, and what your estimated monthly mortgage payments will be.

Once you are pre-approved for a mortgage you can start searching for your home. If there are any changes to your income or employment status it is important to promptly contact your lender, as this can effect your loan approval.

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