Okay, so what do I mean by mortgage application readiness; and how does one improve his/her mortgage application readiness? The best answer to this question can be found in the information required by a mortgage lender.

Having a thorough knowledge of exactly what that information is, how it is provided, when it is provided, and how many times it may be requested in the form of updates will be discussed here. How a mortgage borrower approaches the application process could mean the difference between heart palpitations and focused calmness throughout the process; So let us address mortgage application readiness here.

We must begin where the process begins; at the origination stage. Most loan officers will prepare a borrower for the initial application signing by requesting that certain information be made available at that time so that the borrower will have made copies of the required documents.

In addition to preparing income and asset documents and having them ready, I'm suggesting that a borrower requests from the originator, specific information relating to what documents are subject to expiration and therefore will need updating, so that they will also be made available when requested.

Here are a couple of actions mortgage borrowers can take to ready themselves for the mortgage loan application; even if the loan officer does not have all the answers to a borrower's questions.

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Whatever income and asset documents a borrower receives at regular intervals (weekly, bi-weekly or monthly), will become outdated after thirty days; so unless the borrower is self-employed, each new document should be copied and made ready to be submitted upon request. Bank statements expire after sixty days.

A mortgage borrower should always be prepared to submit evidence of his/her identity. Copies of photo identification and social security card(s) are usually sufficient, but I've found that on frequent occasions, social security cards are unavailable due to misplacement, or a general feeling that because the number was provided, that ought to be enough; but please bear in mind that a copy of the card will be required by most FHA lenders so requesting a new card, if it is in-fact misplaced, is another step toward mortgage application readiness. It may seem a bit trivial for a lender to insist on the of SS card copy, but no borrower would want a small item to delay the more eventful occurrence of loan approval or loan closing.

Credit Report advice is not an area that I readily delve into because there is no shortage of credit counseling agencies and credit advisers available for a borrower to consult with, but I will venture this opinion; A consumer credit report can be obtained from each of the credit bureaus; and potential borrowers should request a copy of their report from each one - Equifax, Experian and Trans Union - so that they have full knowledge of their credit ratings and/or creditworthiness.

However, bear in mind that the report(s) received from these bureaus will not be accepted by the lender, so no one should be surprised when asked by a lender for permission and the fee required to conduct a credit investigation, independent of those provided by the three repositories. The consumer copy should be used strictly for mortgage application preparedness. Seek Credit Advice from a professional in that field.

Origination requirements which should be clearly understood are the upfront costs that a borrower will incur for the payment of appraisal, credit report, and application fees. The appraisal company and credit report agency are independent, third party participants hired by a lender to provide these services.

Neither report can be excluded from the mortgage process and the appraisal must be conducted by licensed and/or certified professionals specific to the state in which the property is located. In addition, appraisers must be approved by HUD when the mortgage is to be insured by the FHA.

These items, although already paid will be reflected on the Good Faith Estimate disclosure (GFE) as a part of the total estimated cost the borrower will incur in the transaction, but they are paid only once so this should not be of concern.

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Good Faith Estimates and Truth-in-Lending (TIL) disclosures must be provided to mortgage borrowers within seventy-two hours of the application date; this is required by real estate settlement procedures act (RESPA) regulations.

In addition to the disclosures mentioned, mortgage processors will most likely request some of the items/updates discussed earlier, which I hope the readers of this page will be prepared for based upon everything written here. So I would expect that potential borrowers who have read this page would not allow the processor's "Opening Letter" cause any worry or consternation, because ultimately, the kind of preparations discussed on this page, when made ahead of time, would create readiness for that letter and the required items it contains.

As you would probably agree, the ability to anticipate what is going to be required during the mortgage application process, creates confidence which works to allay nervousness, and reduce heart palpitations which can be caused by surprises. Surprises in turn are the result of unawareness.

So the idea is to be as prepared as you can be; and always keep in mind that at each stage of a mortgage loan application process, there is a highly trained professional (required now more than ever before by state and federal laws - S.A.F.E), putting forth his/her best efforts to get the loan approved and ultimately closed. Readiness, focus and calm, often leads to a successful mortgage closing.

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