Getting a home mortgage may seem very simple to some people. From an outsider looking in it can appear that all you need to do is give them information about your job, and then show them which house you want and then you are done. This couldn't be further from the truth. There are many steps that you must take in order to get approved for the loan. Here are some things that you should be prepared for.

1. A Credit Pull

One of the first things that mortgage lender will do is pull your credit history and credit report. This is a very important step to getting a mortgage because it shows just how well you manage your debts. The credit pull will have a detailed list of all the debts that you have had in your life. Then it will show how long it took you to pay them off, if you made your payments on time, and what your current outstanding debts are. This is important because it will also give a score. This score tells the lender how likely you are pay your mortgage payments on time. The better the score, the more likely you are to get the loan and for a better interest rate. Someone with a poor credit score may not even be considered for the loan until they get their score up to a certain amount.

2. Request For Your Tax Records

Another important part of getting a home loan is giving the mortgage lender your tax records. These records are important because they show how much money you really make in a year. You will also be required to show them your w-2 and employment information, but the taxes will show if you have any other investment income, and how much you deduct for other expenses. The AIG or Adjusted Gross Income, will be the number that they base your income off of to determine how much money you can spend on your house each month.

3. Proof Of Down Payment

Lastly, you should be prepared to show them proof of your down payment. If it is being gifted, you will need a gift letter and the bank information of the person who is gifting. If it is from your savings, you will have to give them those bank records. And if it is from investments, you will need to show them the stocks that you are planning on cashing. These are a couple of things you should be prepared for with your mortgage.

For more information on home mortgages, contact your local home loan service.