• Get a preapproval letter
• Gather your information
• Signed Purchase and Sales Agreement
• The Bank
• The Closing

The time honored way of applying for a mortgage was to go to the local bank or savings and loan and apply for a mortgage. Today information flows much quicker, heralding a time when preapproval is required before an offer will even be looked at. Instead of one banker at a time, the buyer can generate competition among the financial institutions and take the best offer. Check today's mortgage rates...

Step 1: Get a preapproval letter

Once the offer has been submitted and accepted, it is time to get the pre- from pre-approval. Apply for a mortgage, again either online or from a trusted family banker. Either way, the process of securing a mortgage can be expedited if the borrower is prepared to provide critical information to the lender at the start of the process. The delivery of the following so-called "Alternate Documentation" to the mortgage consultant at application time will make for a much smoother process.

Step 2: Gather your information

* Executed Purchase and Sale Agreement (property being purchased).

* Social Security Numbers for all applicants.

* Previous years W-2 and current pay stub

* For self-employed borrowers (those who have an interest of 25% or more of a business),the previous two years of Federal Income Tax returns with all schedules, and current profit and loss settlement.

* Employment history with company name and address, position and salary.

* Three months bank statements to evidence funds needed to purchase and finance the property.

* Listing of current, long term debts (10 or more remaining payments) with names, addresses, account numbers, monthly payments and outstanding balances.

* If applicable, two year residence history with landlord information.

* If applicable, executed Purchase and Sale Agreement (property being sold).

* If applicable, relocation benefits provided by your employer.

* If applicable, retirement pay verification.

* If applicable, Divorce Decree, including Separation Agreement.

* If applicable, last twelve months canceled check for current mortgage.

* If applicable, Gift Letter with evidence of deposit of the gift and the donor's ability to give the gift.

The time leading up to the signing of the P & S is the time for house inspections. This may include hiring a licensed home inspector to access the relative soundness of the property, to test for radon, lead paint, hazardous materials, septic systems, and so forth. Make a copy of these reports a part of the mortgage package for the mortgage consultant.

* Executed Purchase and Sale Agreement (property being purchased).

* Home Inspection report.

The bank will require an appraisal of the market value of the property. The bank or mortgage broker will usually select a licensed appraiser to prepare an Appraisal Report. Based on this value the bank will loan you a percentage of its value, usually 80%, though up to 100% financing plans may available. The bank usually does a deed search and review to insure it is in good order.

Step 5: The Closing

This is where the transaction is finalized with document signings and money transfers. The deed is registered in the buyer's name. The buyer signs a note (mortgage) using the home as collateral. The buyer's bank should supply closing costs and stipulate how this should be paid, usually a money order is used.