Tips for Obtaining a Mortgage During Tough Times

Obtaining a mortgage is not easy today, considering all the paper work, red tape and time involved.

But there are ways to speed up the process. Bring a copy of your paycheck stub - or federal income tax returns, if you are self-employed - when you visit the lender to fill out the mortgage application.

The lender still will verify your employment status, but bringing "proof" of your income will get the application process off to a smooth start. Know your assets and their value. Assets are the things you own, such as your house, car, savings accounts, and the cash value of your life insurance policies.

If you don't know, ask your insurance agent whether your policy has a cash value.

To determine the value of your family car, you'll have to know the model and year. The lender that financed your automobile purchase has tables giving current values, and some new car dealers may be willing to provide that information, too.

If you are selling your present home as part of the process of buying another, you may already have had your home appraised. If so, the appraised value is what you should give your mortgage lender. Know your liabilities. Liabilities are what you owe - the mortgage on your present house, automobile, and other loans, and credit card balances, for example.

Bring a list of all outstanding loans, the name of the lender, the account number and the amount still owed. Your current lender can tell you the balance still due on your mortgage and the institution that is financing your automobile can do the same for your car loan.

Also bring a list of charge cards with account numbers and any outstanding balances when you apply for a mortgage loan.

Make certain you have all your credit cards on the list. If our credit check turns up two or three charge accounts you didn't tell about, someone will have to contact you to verify the information.

This not only slows the loan approval process, but it also might make the lender wonder what else you haven't revealed about your credit history. Be candid about any credit problems.

Tell the loan officer if you missed loan payments in the past or if you had other financial problems. Be prepared to give the lender a written statement explaining the situation and how you handled it.

For example, a credit check might turn up a "problem" that really is a dispute with a furniture store over a bill you have not paid because that table had a broken leg when it was delivered. In such cases, bring copies of all correspondence on the matter. Know who in your company should receive a request for verification of employment.

Give the lender the individual's name and title, or the name of the proper section if the personnel office is large.

Make certain you have the correct address, especially if the personnel office is not located at the office or plant where you work. Know your savings and checking account numbers. The lender will want to verify your accounts. Be accurate. Mistakes cause delays. Ask the lender what information you'll need, then be sure to bring it.