Getting a Mortgage Step-by-Step

This checklist will guide you through the process of getting a mortgage, including all of the steps involved in this process. The first steps are:

1. Determine what your mortgage limit is. The rule of thumb is that your mortgage payment should not exceed 28% of your monthly income.
2. Check your credit . If your score needs improvement, consider delaying your home purchase until you cain bring it up.
3. Determine the type of loan that is best for you.
4. Choose the lender(s) you want to use.
5. Get pre-approved for the amount you want to borrow. (You can go to bankrate.com for additional information)  

Next, gather the paperwork you will need to prove your income and financial standing. You will need to supply:

1. Your paycheck stubs from the past 30 days.
2. A W-2 statement if you have had your current job for 2 years.
3. A recent credit card statement.
4. Two bank statements from the past 90 days.
5. Proof of any pension, retirement or Social Security.
6. Proof of income. This can be from rentals, any investments, or a current home if you are not a first-time buyer.
7. You will need to show proof of child support or alimony. It can be paid or received.
8. Any loan information that you may have from a current home, if you happen to own a house.
9. Your 401 statements.
10. A divorce decree (If applicable).

Finally, do the following:

1. Lock in the rates that you want to use
2. Bring all of the documentation listed above, as well as proper identification, to the closing.

Contributed by James Link