Buying a house can be a very exciting, yet confusing time. Many people are taken off guard when they start the process only to realize that the mortgage lender will want more information than they have prepared. Before you start the application process, you should take the time to get everything ready so that the process is as simple and painless as possible. Here are some things that the lender will ask for.

1. Proof of Down Payment

If you are putting a down payment on the house, you will need to prove where you are getting it. For example, if the down payment is your own money that you have saved up, you will need to give them a bank statement from the institution where your money is saved. That way they can ensure that you have enough funds for the down payment. If the down payment is fully or partially a gift then you will need to get a gift letter from the individual as well as a bank statement from the gifter to prove that they have the funds to give.

2. Two Years Worth Of Taxes

Another thing that many mortgage lenders ask for is two years' worth of taxes. This is a good way to see how much money you are bringing in each year. Even though they will see your W-2's and pay stubs if you are a contracted employee, they want to see your investment, deductions, and any other types of income that you are claiming. This will help them to get a better idea of how much you can really afford and what your income is annually.

3. Credit Report

You should be aware that the mortgage company will pull a credit report whenever you start and finish the application process. For example, they will pull the report to get the preapproval, and then they will pull it again when you close on the house. To keep your credit score as high as possible you shouldn't open any new lines of credit in the months before applying, and be sure to pay your bills on time and keep your credit card balances low. Your credit report will help to determine your debt to income ratio, as well as show the lender your credit score. This score will be important in determining your interest rate on the home.

By being prepared you can increase your chances of getting approved for a home loan. Talk to a company like Premium Mortgage Corp for more information.