Mortgage Shopping and Knowing the Basics

Homes can be financed with loans from banks, savings and loan institutions, credit unions, private mortgage companies, or state government lenders. Take time to shop around as different lenders will likely offer a range of loan types, interest rates and loan fees. There may also be local programs to help finance a new home.


Most home loans are made in 30-year and 15-year increments. The principal part of your loan is the amount you actually borrow. Interest is the payment you make to the lender for the money you borrow. Most home loans also include homeowner insurance and property taxes.

Mortgage Checklist:

• Social security card copies

• Drivers license copies

• W-2 forms for the past two years

• Recent pay stubs

• Copies of checking and savings account statements

• Asset documentation

• Salary verification

• Credit card account numbers and balances

• Written explanations for any late payments, recent credit inquiries, collections, judgments or liens

• Income tax statements

• Corporate or partnership tax returns (if applicable)

• Gift letter if any of the funds (such as the down payment or earnest money) are being given to you by a family member

• Current landlord’s name and contact information (if you rent)

• Current and Previous Address



Need a referral? Call Rebecca Melancon at 337-842-9250