Applying for a mortgage can be nerve wracking whether you’re a first time homebuyer or have bought and sold so many times that it seems like you know it backwards and forwards. The loan application determines how much a lender will offer as a mortgage and whether that’s sufficient to purchase a suitable property in your target neighborhood.

Your first goal must be to secure preapproval; this is the conditional promise of a mortgage that allows you to make an offer with confidence. Most sellers want to see one before they’ll consider your offer and builders will always want to see one to show you have the ability to purchase in the price range you’re looking.

Your lender only issues the loan after an underwriter thoroughly assesses your application and has valued the property you intend to purchase as it will be held as collateral against the mortgage.

We know how complex a loan application can appear as you’re sitting there preparing to fill it out, but having your paperwork organized in advance is the key to a stress free experience.

There is a lot of mortgage terminology being thrown at you in the process and sometimes, all of it can seem a bit overwhelming.

Here are the essentials to start collecting in preparation for a loan application.

Work Record

You’ll be required to provide employment information from at least the past two years. If you’re self-employed, you’ll need to show business records and tax returns.

Tax Status

Lenders will request W-2 forms from the past two years. These show what taxes have been withheld by federal and state governments. They will also run a tax report with the IRS to check your status with them.

Current Earnings

Show lenders your proof of earnings for at least the previous 30 days before you make the application. Many lenders want a minimum of two months. They’re doing their du diligence to ensure that you have the ability to repay the loan.

Bank Records

Provide information on all your bank accounts, as well as credit card debt and activity.

Debts

Declare any loan, such as those for a car, furniture, or vacation. Be prepared to show the last three months of your credit card spending.

Outgoings

Estimate your day-to-day expenditure and use your credit/debit card statements to indicate spending habits. Show receipts for any rent you pay.

Dependents

State whether you are financially responsible for anyone else, such as a spouse or children.

And don’t forget this simple piece of advice: if a lender asks for it, just get it to them as quickly as possible. Even if they ask for the same thing ten different times, just get it done without delay. The more responsive you are to the lender and their underwriter, the smoother the process.