Chapter 1



Step 3:

Loan Application

Gather the documents / Take a look at your assets and Monthly expenses


Your credit history is one of the principal measures used by a lender to determine your interest rate. The better your credit, the better lending terms your bank or lending institution will be able to offer you. A higher interest rate translates into a higher monthly mortgage payment, and so your credit score will directly affect how much money you can borrow and at which homes you should be looking.


You should be aware of what information is on your credit report by obtaining and reviewing copies of your credit report from the three main credit report agencies.


These documents, in addition to your credit report, will help establish with the lender your debt to income ratio and your ability as a borrower to repay debts:

Loan Application Checklist


  1. Picture ID with the social security number of the borrower and co-borrowers.

  2. Payment to cover the application fee.

  3. Name and complete address of all landlords for the past two years. (If Applies


  • Employment history for the past two years including names, addresses, phone numbers, and length of time with company.

  • Copies of your most recent pay stubs and W-2 forms. (past two years)

  • Verification of other income. (social security, child support, retirement)

  • If self-employed, you need copies of the past two years signed tax returns including all schedules, and a signed profit and loss statement of the current year. Retirees need tax returns for the past two years.

  • If you have rental property income, bring a copy of all lease agreements.


  • Copies of all bank and credit union statements for the past three months.

  • Copies of all stock/bond certificates and/or the past three statements from all investment and retirement accounts.

  • Prepare a list of household items and their values.

  • Copies of title documents for all: automobiles, boats, motorcycles, and etc.

  • Face amount, monthly premiums and cash values of all life insurance policies. (Cash or Gifts value may be used for closing costs or down payments. You need documentation from the carrier indicating cash value).

  • Creditors:

  • Credit cards (account numbers, current balances, and monthly payments).

  • Installment loans (car, student, etc.) have the same details as for credit cards.

  • Mortgage loans (property address, lender with address, account numbers, monthly payment and balance owed on all properties presently owned or sold within the last two years). Bring proof of sale of properties sold.

  • Child care expense/support (name, address, and phone number).

  • Bankruptcy – bring discharge and schedule of creditors.

  • Adverse credit – bring letters of explanation.

  • Divorce – bring Divorce Decrees, property settlements, quit claim deeds, modifications, etc. for all divorces by yourself or your spouse.

  • VA only – bring Form DD214 and Certificate of Eligibility.

  • Retirees – bring retirement and/or Social Security Award Letter.

Improving any of these areas will help you qualify for better lending terms, so keep that in mind before you speak with a mortgage professional. If it's possible to pay off a car loan or a credit card balance before you seek financing for your new home, the preferential financing terms that you could receive may save you thousands of dollars over the life of your mortgage.

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