The major application involved when applying for a loan is called the Uniform Residential Loan Application Form. The good news is that most of this information is pulled from your credit report, and your loan officer will be able to tell you which pertinent information you need. It is broken down into six major sections: Income, Assets, Personal Information, Credit Information, Property Information, and Debts. The mortgage specialist will then use all the gathered materials to analyze the risk involved in lending you the money. They want to make sure you can make your payments on time and minimize the risk of you defaulting.

Some key tips:

- The more documentation, the better. Full documentation includes tax returns, pay stubs, and W2's. With full documentation, you will be able to qualify for more programs, and you will save more money on your loan.

- Depending on what bank, some loan decisions can be made by an automated system over the phone. This is optimal because often there is less paperwork, and the process is faster.

- As the closing date approaches, keep in close contact with your lender so that you are aware of all you will need for the closing: any additional information and the correct amount of money for closing costs. Also, make sure to thoroughly check your insurance policies to make sure they are up to date with your new loan.

-Make sure you know what your balance is in your current escrow account, and plan accordingly.

• To find out the difference between a direct lender and a broker, click <here>
• To learn how refinancing might save you money, click <here>