Mortgages

Most buyers need the help of a lender. Your lender will help determine the types of mortgage financing available to you, and the amount of money you can borrow based on the different programs. Once your agent has successfully negotiated the contract for your home, the mortgage lender will provide the loan which allows you to purchase the home.

When shopping for a home you must be "pre-qualified". Sellers will expect to see your letter of qualification at the time you make an offer; indeed, many sellers will not even consider an offer from a buyer without loan pre-qualification. Because of this you will need to visit or speak with your lender before you even begin looking at properties.

There are several key pieces of information your lender will need from you. These include:

1. Gross monthly salary
2. Debt information, including names of creditors, account numbers, and monthly payments
3. Child support given or received
4. Balances of any outstanding student loans
5. The names of your employers for the past two years
6. The names and social security numbers of all individuals who will be signing the loan
7. Your two most recent pay stubs (or two years of tax returns if you are self-employed)

Prior to full loan approval you may also need to provide copies of your last three months of checking and savings account statements. Copies of 401K or IRA accounts, as well as copies of any stock or bond portfolios may also be needed, depending on the type of loan package you decide on.

Because your lender must work very closely with your real estate agent, many agents prefer that you work with a member of their team. So don't hesitate to ask for your agent's referral to a qualified lender!

NEXT: Needs And Wants.