Fabled scientist Wernher von Braun had it right when he said, “We can lick gravity, but the paperwork is overwhelming.” When it comes to filling out your home mortgage loan application, the process doesn't have to be overwhelming - if, that is, you know what goes into the kind of application that lenders usually approve. Make no mistake, applying for a home mortgage can be a time-consuming and frustrating process if you are unprepared. So take these steps to ensure your home loan paperwork is in order and easily approved: Lay the Groundwork - A good home-buyer is a prepared home-buyer. So before you get ready to fill out your mortgage loan application, make sure your financial situation is in order. That means checking your credit report to see there are no errors or other surprises (a topic we covered in our last three blogs). Just as importantly, get the necessary financial documents in order. You'll need . . . o A copy of any applicable purchase & sale agreement. o Any current mortgage information, including monthly payments, taxes, and an estimation of housing expenses. If you have lived there for less than two years be prepared to include former home addresses dating back seven years. o Two year history of employment and verification of all income sources. Usually your last several paycheck stubs and copies of the past two years Federal Income Tax Returns should do the trick (especially if you're self-employed). o Information about your checking, savings and credit card accounts. Two months worth of bank statements and investment account information should suffice. On the debt front, lenders typically don't like to see more than 20 percent of your estimated loan amount tied up in debt. Expect to include the outstanding balance of each of your debts. o The Social Security number for you and your spouse, if applicable o The number and ages of your dependents o Information regarding divorce decrees. Not all lenders require that you list divorce information - just don't be surprised when they do. Schedule a Loan Application Interview -- By now you've selected a mortgage lender you're comfortable with and who offers terms and rates that meet your home buying needs. Help your lender help you by scheduling a sit-down, either face-to-face or over the phone. Such a meeting significantly streamlines and simplifies the loan application process. Your loan officer will use the meeting to explain the types of mortgages that the lender offers, information on interest rates, home buying fees, and criteria needed to qualify for your home loan. Not only is this critical information that you should know, it will give you a better framework for filling out your loan application. In fact, in many cases, the lending officer will walk you through the loan application itself during the meeting. You may have to ask, and it's encouraged that you do so, but professional help is right there when you need it. Putting Pencil to Paper - Leave yourself plenty of time to complete your loan application. An hour or two is usually needed to completely fill out a home mortgage application (and the less prepared you are the longer that will take). Whether you are filling out a hard copy application or you're doing so online, place a premium on correct spelling and accurate data. Key Tip - Thinking of buying a home but you're not ready to do so? Even if you plan on waiting six months or so before you buy, fill out a home mortgage application anyway - the exercise will leave you fully prepared for the application process and will also give you a good idea what you'll need to complete your loan application form when the real deal arrives. The first thing you'll see on most home mortgage applications are requests for basic personal information. That means name, Social Security number, employment data - things like that. Then you'll be asked to explain what you want from the lender. Are you purchasing a first home? Refinancing? After that you'll be asked to list your estimated down payment and add where it's coming from. If it's coming from your bank or brokerage account, that's viewed as a plus by the green eye-shade set. But a gift from a relative may be a red flag to some lenders, who may ask you why you don't have the money yourself. The bulk of the mortgage application is devoted to your income, your assets and your liabilities. In other words, the money you earn, the money you have, and the money you owe. Taken together it gives lenders a pretty good idea if you're a good credit risk or not. Making Your Case with Additional Information - If you have had a checkered debt history you'll want to add a brief letter of explanation of what those debts were and what steps your took to alleviate that debt. Also attach any document that supports your case that the debt was addressed. Your loan officer may wind up requesting information that you haven't included. Don't worry - just get the information back to the lender as soon as possible. Sign the Form - Go ahead and sign the form and ship the application off to the lender. Usually, you won't have to wait long for an answer. The loan officer does need time to review your credit report and check out your financial information. Expect an answer within a week or so. Some lenders may even give you a verbal “thumbs up” in lieu of a formal approval. When that happens, pop the champagne and get ready for another round of paperwork - the house closing forms that will make you the owner of your new dream home. Find and review a sample home mortgage application at: Union plus Web Site