Anyone who has purchased a home can tell you : completing the mortgage application is not nearly as fun as browsing real estate listings or selecting new curtains. Whether you are working with an online lender or a “bricks and mortar” lender, the process requires that you provide a great deal of detailed personal information and undergo close scrutiny during the underwriting process. Generally, buying a home involves more paperwork than any other type of loan or investment. If it’s any consolation, there are several steps you can take before completing your mortgage application that will smooth the process and can save you time – and money.

First, check your credit. Whenever you apply for a loan or line of credit, the lender will run a check to determine whether or not you are likely to default on your loan payments. By performing your own credit report check before completing the mortgage application, you’ll have time to look for inaccurate information or signs of identity theft, and correct any errors that could present problems later. After all, your credit is a key factor used by lenders when determining what interest rate to offer. If your credit score is affected adversely by errors, the lower score could mean a higher rate… and higher monthly payments!

Don’t exaggerate on the mortgage application. You might be tempted to inflate your income or downplay the amount of student loans or personal debt owed. Don’t do it. Potential lenders will scrutinize your mortgage application, checking for inconsistencies or signs of financial distress. They are trained to examine documents thoroughly, to ensure you are a good risk for the new loan. By taking the high road and completing your mortgage application carefully and accurately, you are more likely to get approved.

Do your homework. It’s important to understand not only the type of information required on a mortgage application, but also to understand how your lender uses the information in making their decision. Keep in mind that the lender needs an accurate picture of your finances in order to select the right loan. In addition to pay stubs, tax returns, and bank statements, your mortgage application may also need to include self-employment business statements and information about your retirement and investment accounts. Locate and organize these documents, to ensure a smoother process.

Ask the lender plenty of questions. For example, a mortgage application sometimes has spaces to enter information about your previous residences and employers. You are certainly within your rights to ask whether or not they will be contacting past employers. Speed up the process by ensuring that the information you provide them with is current. Another reason to ask questions about your mortgage application is that lenders can help you uncover beneficial information. Until she asked the lender, one first-time home buyer wasn’t aware that she could list “child support” under her other income sources. By including the amount, she was able to qualify for a better loan.

Completing a mortgage application doesn’t have to be as painful as a root canal. All you need to do is prepare the paperwork, stay organized and focused, and remember that communicating in a forthright manner with your lender will save you that precious commodity: time.

Article Source: http://www.homeloancenter.com/Articles/Mortgage-Advice/Mortgage-Application.aspx