• Please provide two years W-2's and one month recent pay stub. If you are self-employed or commissioned, please provide two years tax returns.
• If you own rental property, please provide rental agreements and most recent two years tax returns.
• Provide two months bank statements for each bank, stock and mutual fund account.
• Provide recent copies of IRA/401K accounts that you may have.
• Provide a recorded copy of divorce decree or separation agreement if applicable.

Get Qualified - Getting qualified before you apply for a loan can help you understand how much you can borrow.

When buying a house, you may get pre-qualified or pre-approved.  You can typically get pre-qualified over the phone or on the Internet in a few minutes.  A Pre-qualification is not as beneficial as a pre-approval since you go through a more rigorous process which includes verification of your credit, income, assets and liabilities.  It is highly recommended that you get pre-approved before you start looking for a house.  This will help you:

1. Determine the maximum price house you can buy, so you don’t waste time looking for properties you can not afford.
2. Be in a stronger position when you are negotiating with the seller, because the seller knows that your loan has been pre-approved.
3. Close quickly, because your loan is already pre-approved.

Shop loan programs and rates - To shop for a loan you will need to:

Think about how long you plan to keep the loan.  If you plan to sell the house in a few years you may want to consider an adjustable or balloon option.  On the other hand, if you plan to keep the house for a longer time, you may want to look at fixed loans.

1. Understand the relationship between rates and points.  Points are considered to be prepaid interest and are tax deductible.  Each point is equal to one percent of the loan.  For example, 1 point on a $150,000 loan is $1,500.  The more points you pay, the lower the rate.
2. Compare different programs.  Shopping for a loan can be difficult.  With so many programs to choose from, each of which has different rates, points and fees, it’s hard to determine which program is best for you.  That’s where an experienced loan officer from Davidson Mortgage can help guide you in the right direction.

Obtain Loan Approval - Once your loan application has been received, we will start the loan approval process immediately.  This involves verifying your:

1. Credit history
2. Employment history
3. Assets including your bank accounts, stocks, mutual funds and retirement accounts
4. Property value

• Fill out the loan application completely.
• Respond promptly to any requests for additional documents.  This is especially critical if your rate is locked or if you plan to close by a certain date.
• Do not make any major purchases.  Do not buy a car, furniture or another house until your loan is closed.  Anything that causes your debts to increase might have an adverse effect on your current application.
• Do not move money into your bank accounts unless it can be documented.  If you are receiving gift money from friends, family or other relatives, please contact us.

Close the Loan - After your loan is approved, you will be required to sign the final loan documents.  This will normally take place at the closing attorney's office.  Be prepared to:

• Bring a cashier's check or other certified funds for your down payment and closing costs, if required.  Personal checks are normally not accepted.
• Review the final loan documents.  Make sure that the interest rate and loan terms are what you were promised.  Also, verify that the name and address on the loan documents are accurate.
• Sign the loan documents.