Lenders will ask several questions to start the loan process:

• How much cash and what liquid assets do you have?
• How many current debts do you have?
• What type of work do you do and what is your current income?
  
• What is your credit history?

You will need to provide income documentation for almost all mortgage loans. Usually you will be required to supply your two most recent pay-stubs, last two years of W2's, name, address, and phone number of your employer and the length of time that you have been there with your current employer at your current position. Your income will play a major role in your debt to income ratio.

You will also need to provide proof that you have home owner's insurance. Most lenders will like to see that the insurance is good for at least six months after the transaction date. If you are purchasing a home, plan on purchasing home owner's insurance that is good for a full year. You should factor this into your total closing costs.

A home buyer can get a loan approval contingent upon an appraisal report. However, the appraisal must be submitted for review before scheduling closing. The appraisal report basically tells the lender bank that the property used as collateral is worth the money it is said to be worth.

Lenders will sometimes need copies of your tax returns from the lasr two years, copies of your last three months of bank statements, and a copy of your current hazard insurance.

 

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