Preparing for your first mortgage part one

As a Credit Advisor, I am often asked by many of the lenders I work with across the country, to assist my clients in properly preparing for their first mortgage. This is no easy task as it often requires people to change the way they think and the way they deal with their finances. I am often told by those who have failed to take my advice that they just did not want to give up that night out on the town or that dinner and a movie with their spouse. One even told me it was too diffucult to clip coupons and there was no way she was going to buy generic foods. Of course, they use these excuses to justify their failure, but the fact is, they were just too lazy or obstinate to take my advice. As a result, they are all still renting and paying someone else's mortgage.
When preparing for your first home mortgage there are some basic financial things you can do that will make it easier for you and your mortgage broker.

Start to collect and organize documentation:

· Start saving and organizing your pay stubs. Often you will need the past 30 days worth of stubs.
· Gather bank statements from at least the previous two months. You may need these to show money to cover down payment and closing costs.
· You will likely need the past two years W-2s/1099s and may need the past year's complete returns
· If you have a 401(k), mutual funds, stocks, life insurance, or other assets, you may also need the past 2 months statements from those accounts. These will be especially useful if you are trying to obtain a stated income loan.
· Check your credit. If you haven't checked it yet, now is a good time. You can get one free annually (more frequently in some states). If possible, go over your credit report with your mortgage broker or credit advisor as he or she may be able to offer you some insight to what will hurt your chances and what will help. Clean it up if you can. If you have charge offs, or collections that you can pay off, or have already paid off, make sure they are accurately reporting. Find a reputable credit restoration company and seek their help. They are often expensive, but the money you will save with a higher credit score will more than make up for what you spend. Northwest Business Advisors is a licensed, bonded and insurred company out of Oregon that is rated one of the top three credit restoration companies in the country. I have personally checked them out and they meet the criteria I set forth in my article "The Truth About Credit Restoration...".
· If you have any student loans that are still in deferment, contact the lenders and get a letter of deferment.

In the next installment of this article I will discuss why you should have significant savings and how to maximize that savings.