PREPARING FOR THE MORTGAGE APPLICATION

CONGRATULATIONS!! If you're reading this, you must be considering buying a home or maybe refinancing your existing mortgage. Applying for a mortgage can be a nerve racking experience. However, if you know what types of questions will be asked and what documentation you will be requested to provide, it can be less intimidating, go much quicker and be less frustrating.

I have broken the application process down, step by step for you below. Each main area of the application is addressed and I explain the basics of why and what you should be prepared for.

ATTITUDE The number one thing to remember when applying for your mortgage is that the loan officer or loan originator is not the person to make the loan decision. In fact, in most cases, the loan officer doesn't get paid unless they get your mortgage approved and closed. It is in their best interest to understand your complete financial "picture" and then find you the best loan for your needs. Be honest and upfront about the facts. The loan officer is not judging you. He is only trying to understand enough to get you approved for the mortgage. Take a deep breath! Some of the questions may make you a bit uncomfortable. It's natural to feel uncomfortable about giving out such private information, especially to a perfect stranger! Just keep reminding yourself that this information really is needed by the people who do have to make the mortgage decision. Also, keep in mind that you are protected by the Right to Financial Privacy Act. The information that you provide has to be kept in the strictest confidence by all mortgage personnel.

Now, relax and accept the fact that gathering the following documentation and by providing this information upfront, the mortgage process will be much easier and faster.

THE BASICS 1) Provide the basic information about yourself (name, address, social security number, employment information, phone numbers, etc.) 2) Explain what you are wanting to do (Refinance, purchase a first home, a second home, etc). 3) Explain where the down payment is coming from (bank accounts, sell of other home, gift, etc). 4) Provide your driver's license, social security card, green card, etc. 5) Bring original documents (the loan officer will make all of the copies for the lender's use). 6) Discuss your mortgage options.

INCOME DOCUMENTATION You will be asked to disclose your income. You will disclose your Gross income (before taxes and everything else that we all pay for). The following is a breakdown of the types of documentation you may have to provide to support this number that you've stated. The required documentation varies, depending on how you earn your income.

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