Documentation

The most-required documents are:

• W-2s and tax returns
  (most recent 2 years)

• Current retirement act statements
  (all pages)

• Most recent pay stubs
  (full month)

• Bankruptcy discharge and schedules

• Current bank statements
  (all accounts, all pages)

• Divorce decree

Obtain your Credit Report before you apply.

Most people need not worry about the effects of their credit history during the mortgage process. However, if you get a copy of your credit report before you apply for your mortgage, you can take steps to correct any negatives before making your application.

Be open and honest. Knowledgeable mortgage professionals know there can be legitimate reasons for credit problems, such as unemployment, illness or other financial difficulties. Discuss these openly and ask your broker to assist you in writing a "Letter of Explanation." If you have restablished your credit and have made on-time payments for a year or more, your credit may already be considered satisfactory.

When you have derogatory credit, all other aspects of the loan need to be in order. Equity, stability, income documentation, assets, etc. will play a larger role in the approval decision.

Check the accuracy of your credit information. Improve your score by:
Paying bills on time Keeping low balances on cards Applying for fewer credit accounts so credit checks will be infrequent	Limiting the number of credit accounts, and formally canceling zero-balance accounts so they can't count against you