Mortgage Application Checklist

To facilitate processing of your loan, you must provide the following information:

• Copy of signed sales contract with all riders and amendments attached
• Copy of property listing sheet
• Copy of Declaration, By-laws and Budgets (condominium only)
• Check for application fee
• Your address for the past two years
• The name and address of your employer for the past two years
• Social Security numbers for all applicants
• W2 income tax forms for the past two years
• Copies of federal income tax returns, including all schedules for the past two years
• Copies of pay stubs covering a recent 30-day period
• Copies of statements for the past three months (or more recent quarterly statement) for bank accounts, mutual funds, brokerage accounts, retirement plans, etc. to identify the source of your down payment
• For the self-employed, year-to-date profit loss statement signed by you
• If applicable, corporate or partnership tax returns with original signatures; partnership agreements; rental or lease agreements; or gift letters showing the amount, relationship of donor, no repayment required and verification of source of gift
• Copy of cancelled earnest money check, both sides when available
• Complete name, address, account number, balance and monthly payment information for any installation or credit union loans, mortgage loans or credit cards
• Name, address and telephone number of current landlord, if applicable
• Estimates of value of real estate owned
• You also may be asked for information on VA loans, Certificate of Eligibility of DD-214, pending lawsuits, former bankruptcies or foreclosures and divorce decrees outlining child support and alimony

Breakdown Of Your Mortgage Payment

Here is what a mortgage payment typically includes:

PRINCIPAL:  The amount of money you borrowed.  Each month, you pay back a portion of that principal.  Over time interest becomes a smaller position of your monthly payment - more of your payment goes toward reducing the principal you owe.

INTEREST:  The cost of borrowing money, usually expressed as an annual percentage of the loan amount.  For example, 7% or 6.5%.

PROPERTY TAXES:  Taxes paid to local governments, usually charged as a percentage of your property's assessed value.  Your lender generally collects the taxes through your monthly payments, usually held in escrow.  The amount of tax will vary by where you live and the type of property you own.

HAZARD INSURANCE:  An insurance policy that protects you from financial losses on your property that result from fire or other hazards.

PRIVATE MORTGAGE INSURANCE (PMI):  An insurance policy required by mortgage lenders for mortgages with less than a 20% down payment of the purchase price.  The policy helps mortgage lenders recover losses if a borrower fails to fully repay.  Mortgage insurance makes it possible to buy a home with a lower down payment.