If you’re applying for a home loan, there’s no need to add stress to the situation! Preparation and knowledge are the two best components to make the home mortgage process simple and easy.

 

Prepare a loan application checklist to make sure you have everything in order to get approved for a home loan. There are many documents you will need to have handy for your bank (you can instantly download our free checklists by signing up to the right).

 

Remember to make copies of these documents, and never give the bank original copies of anything; retain the originals for your records.

 

First, you will need to present various forms to verify your income. These forms include earning statements, and W-2 forms, as well as at least eight recent pay stubs.

 

Also, have copies of your tax returns from the last two years. In the event you are self-employed bring copies of your earnings statements.

 

You will also want to bring copies of any additional forms of income you currently collect on. These include social security check stubs, interest from any accounts you may hold, rental real estate, and any veterans’ benefits you may be receiving.

 

The second part of your loan application checklist should include documentation of all your current assets. This will include any bank accounts you and/or your partner currently hold, as well as any bank loan information.

 

Checking and savings account information will also be required. List any stocks and bonds you currently hold, as well as any additional investments. If you own a car or more than one car, bring the title(s) to prove ownership of the vehicle.

 

If you have already begun the purchase of your new home, you will need to bring any and all documentation in order to be approved for a loan.

 

This includes the purchase contract, as well as any information about a deposit you may have made to guarantee the purchase of the house. If you wrote a check for the deposit, be sure to make (and bring) a copy of the check.

 

You will also need to quantify any information about any other debt obligations you hold.

Keep and make copies of recent credit card statements, as well as any car and student loans you may owe money on.

 

Be sure to include information about the creditors with which you owe money to (name of the company, address, etc.).

 

If you currently hold a mortgage or are making rental payments, include documentation of this too. The same is true if you currently pay alimony or child support of any kind.

 

Miscellaneous forms of documentation you will need to present include a copy of the gift letter (if the down payment was paid for by a friend or relative), as well as any additional information about the origin of your down payment.

 

Having copies of these items on hand will make the loan application process quick and simple. Having to go back and forth from the bank in order to get all the necessary documentation can cause stress and can waste time.

 

Before submitting all of this documentation, get a copy of your credit report. You need to do this first because credit reports often contain incorrect or out of date information. Underwriters usually look at your credit report before they look at anything else so if there is a mistake, the whole loan process could be derailed. You probably won’t be asked to submit the report, underwriters like to get it themselves (so they know you didn’t counterfeit it).

 

Don’t forget this essential checklist with you when you apply for a loan, and be sure to retain the original documents for your personal records.