If it's been a while since you applied for a mortgage loan, the gameplan has changed. It's imperative that you provide the lender with information in five separate categories during your first visit. Unprepared, you stand to lose precious time and pay potentially higher interest if your loan application is delayed.

In Part I of this article, we examined the first two information components lenders require. Here are the final three to prepare for:

The third category of information deals with your income and assets. You'll be asked to give your gross monthly income (which could include overtime, bonuses, commissions and any net rental income.) If you receive alimony, child support or separate maintenance income, it can be considered for loan qualifying if you so desire (although persons receiving income from these sources can choose not to divulge this information to the lender.)

Next come your assets. The lender will want a complete accounting including savings, CD's, bonds, life insurance---even personal property like boats and motor homes. Borrowers often wonder why this question comes up---but it's for a good reason. The lender can determine how well a borrower accumulates assets and can see that you have other financial resources besides what you're using for the down payment (which could be the equity from your previous home or a home sale that's closing soon.)

The lender needs to know about other real estate you own as well. The equity in that property may be viewed as an asset in your financial picture.

Next the lender will ask you about the least-favorite area of your financial picture---your debts. This is absolutely not the time to "forget" that you owe a debt. The thorough process that the lender uses will more than likely uncover the true story. In fact, you will be asked to sign the loan application stating that you have told the truth. The penalty for NOT disclosing information is stiff---including federal fines, imprisonment or both!

So what debts do you disclose? When in doubt, spell everything out! These include credit card accounts, installment loans, like car payments, student loans---even loans you've signed as a co-borrower or a co-signer. Based on the size of the obligation (and the payment time remaining), the lender will determine if these affect your qualifying picture. The lender will need to know how much you owe, how much you pay monthly, the account numbers and where payments are made.

The fifth category of information has to do with the house you've selected and the house (if any) you've sold. If your offer has been accepted on a home, you'll need to provide the lender with a copy of the purchase agreement. This should show the street address, legal description, as well as the names under which you'll take title. If you're applying for a construction loan, you'll need even more information about the lot, the plans and any outstanding loans on the property.

If your previous home is sold and closing, the lender will want information about it as well. Be prepared to tell the lender approximately how much you'll net from the sale, when the closing is scheduled to occur, and the name of the person (or closing company) handling the sale.

Well, there you have it - a bird's eye view of just what you'll need to document for your next mortgage loan application. If you have everything together when you first meet with the lender, you'll find that the loan processing time may be trimmed and the sailing much smoother for your next mortgage loan

If you missed Part I of this series, go here: If Another Mortgage is in Your Future, Be Prepared!

For more Borrower's Advice, Click Here

Published: February 25, 2000

Use of this article without permission is a violation of federal copyright laws.

Julie Garton-Good, DREI “The Frugal HomeOwner™” As a syndicated newspaper columnist, author and international speaker, Julie Garton-Good DREI, C-CREC™, is called “America’s Home Affordability Expert”, addressing more than 25,000 persons annually on topics of real estate industry trends and home affordability. She is the author of five real estate books and is the sole two-time recipient of the international "Real Estate Educator of the Year" award from the Real Estate Educators Association. In 1997, The National Association of Realtors® nominated Julie as one of the fifty most influential people in the real estate industry. She shared the list with only three other women.