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• Evaluate your Finances
  This is extremely important for the success of your loan. Check your income and expenses, both current and projected, to make sure you can make the house payments in the future. They come with agonizing regularity for a long time.

  Make sure that you determine what size mortgage you can handle and stick to it. Many lenders may try to loan you more than you can afford comfortably.

• Shop Around for your Mortgage Lender
  This is probably the most important step after you check your finances. Make sure that you and your lender communicate clearly and well. It is also important that you like and respect the lender. It is almost the same as getting married to your lender for several months since you will be in very close proximity for that period of time. If you wind up not liking your lender and having to get a divorce, it is financially and emotionally draining. Starting over is almost impossible.

  Make sure your lender has been in business for a fairly long time. Experience is important, especially if any sticky, unusual points arise during the mortgage process. If the lender has served people in your area that you know or at least call for a recommendation it can prove to be of great benefit.

  Question your prospective lender carefully about his lending practices. Make sure you understand his processes. If you don't understand something, make sure the lender will take the time to explain the point so you are comfortable with it. Make sure you know how to get update status on your loan before you start. This will save many frustrating moments during the process.

• Check Your Credit Report Before applying for the Loan
  Most people don't know what is on their credit reports. If there are derogatory items, it is harder for your lender to get the best interest rates for you. It may also delay the loan because all derogatory items must be eliminated or explained. Derogatory items are things like late pays, wrong balances, debts on your report that are not yours(it does happen), or any other negative comments on your report If you can show your lender the credit report at the time of application, he can get started sooner to correct the problems.

  You can get your credit reports online for a very nominal cost. You should check Experian, Trans Union, and Equifax since these are the credit bureaus used by all lenders.

• Applying for the Loan
  This can be the easiest part of the loan process if you prepare yourself. Make sure you know where all of your financial papers are stored so that you can get to them quickly. At the time of application, your lender will ask you for all of the financial information that is needed for the loan. This includes income of the applicants, paycheck stubs, bank account statements, tax returns, rental agreements, proof of insurance, divorce decrees, investment information, and debts.

  You may not have all of the documentation at the time of application, but your lender will give you a list of what he needs. Make sure you get the documentation back in a timely manner. Any delay in getting the information to him may delay the loan. Above all, don't argue with the lender about what information is needed. He would not ask you for it unless it was vital for the loan.

• What to do During the Processing of the Loan
  Now this is really the hard part of the loan process. It sometimes seems that all of your information has fallen into a black hole and you are not hearing anything back. Days go by with no feedback from the lender. This is perfectly normal since the loan has to be set up and processed by the lender. This may take several weeks since it is a detailed process. Be patient during this time. If you remember Step 2, you know what the lender uses as an updating procedure. If you follow this procedure, this period of time will be much less stressful for you and the lender.

  During this process, the lender may ask you for additional information. You should provide this information as soon as possible. Don't argue with the lender, since the need for this information probably came up after the loan was processed.

• The Closing
  At long last, you loan is ready to close. The title company will contact you and let you know the date and time of closing. Make sure that you get to the closing on time. If you can't get there, the new closing may be significantly delayed. You might lose your lock on interest rates, and many other bad things can happen. In the worst case, you may have to start over.

  You may also be asked to bring other things to the closing, such as cashiers check, updated insurance information, or statements from your creditors. Make sure you bring everything, since the closing could be delayed if you don't have them

  Be sure to check every item at closing so that you understand exactly what you're signing. Don't be afraid to ask questions since it is your money that is at stake.

At long last the process is over and you have your loan. What a relief. If you have followed the fairly simple steps given above, you should feel good about what you have accomplished. Getting a home loan could be the start of many happy moments for you. GOOD LUCK.

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