Mortgage Application Checklist

Scores 4.73 with 90 votes
  • Get copies of your credit report from several sources and check carefully to see if there is any incorrect information. You can dispute these items.
  • You will want to do some research in the neighborhood, and have the house you select inspected before committing to buying it.
  • Figure out how much of a down payment you can afford.
  • Determine how high of a monthly payment you can comfortably manage. This should be non-negotiable. Do not let the lender talk you into something you can't afford.
  • Choose either a fixed rate or an adjustable rate mortgage.
  • Use a mortgage calculator to determine how long of a term you will need to pay off your mortgage at the monthly payment you can afford.
  • Some Realtors like to work with specific lenders to streamline home sales.
  • Some home-buyers prefer to use their local bank or credit union.
  • Some loan companies deal only in real estate and have special financing plans.
  • In some cases, you'll find an owner willing to carry the note.
  • Expect to be asked for 2 month's worth of pay stubs, and possibly your last 2 tax returns (the latter especially if you are self employed).
  • Most lenders want proof that you have maintained a residence and paid bills in a regular fashion for at least 2 years.
  • The lender will pull your credit report, so you should have already pulled your own copy and disputed incorrect items.
  • This is the most common kind of debt, and is a good indicator of your debt-to-income ratio.
  • 2 months is generally sufficient.
  • This includes government pensions, retirement or Social Security income as well as income from rental properties or investments
  • Your current house mortgage if you have one, plus any auto loans or personal signature loans must be included.
  • If you've recently divorced, your divorce decree may relive you of some joint debt. Also show proof of child support or alimony payments.
  • List all of your current and projected expenses.
  • Get several different quotes for your mortgage and compare. It never hurts to have some competition for your business.
  • If you have to, ask for a day to look over the papers with your attorney.
  • Don't let yourself be bullied into a down payment or monthly mortgage payment you can't afford.
  • If you feel the interest rate is unfair, ask why it is so high and try to have it decreased.
  • Request that extra fees be waived. Many fees are tacked on at closing under the guise of 'paperwork fees' or 'copying fees'. Many lenders will waive these if asked.
  • If at all possible, the other party or the Realtor should pay closing costs.
Scores 4.73 with 90 votes
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