To determine the value of the property you are purchasing or refinancing, an appraisal will be required. An appraisal report is a written description and estimate of the value of the property. National standards govern not only the format for the appraisal; they also specify the appraiser's qualifications and credentials. In addition, most states now have licensing requirements for appraisers evaluating properties located within their states.

An installment debt is a loan you make payments on, such as an auto loan, a student loan or a debt consolidation loan. Do not include payments on other living expenses, such as insurance costs or medical bill payments. We will include any installment debts having 10 or more months remaining when determining your qualifications for this mortgage.

If you have had a bankruptcy or foreclosure in the past, it may affect your ability to get a new mortgage. Unless the bankruptcy or foreclosure was caused by situations beyond your control, we will generally require two to four years have passed since the bankruptcy or foreclosure. Equally important is your ability to re-establish an acceptable credit history with new loans or credit cards.

Any student loan which will go into repayment within the next six months should be included in the application. If you are not sure exactly what the monthly payment will be at this time, enter an estimated amount.

If other student loans are reflected on your final credit report, which will not go into repayment in the next six months, we may need to ask you for verification that repayment will not be required during this time period.

Generally, a co-signed debt is considered when determining your qualifications for a mortgage. If the co-signed debt does not affect your ability to obtain a new mortgage we will leave it at that. However, if it does make a difference, we can ignore the monthly payment of the co-signed debt if you can provide verification the other person responsible for the debt has made the required payments, by obtaining copies of their cancelled checks for the last six months.

Congratulations on your new job! If you will be working for the same employer, complete the application as such but enter the income you anticipate receiving at your new location.

If your employment is with a new employer, complete the application as if this were your current employer and indicate you have been there for one month. The information about the employment you will be leaving should be entered as a previous employer. We will sort out the details after you submit your loan for approval.

If you are selling your current home to purchase your new home, we will ask you to provide a copy of the settlement or closing statement you will receive at the closing to verify your current mortgage has been paid in full and that you will have sufficient funds for our closing. Often the closing of your current home is scheduled for the same day as the closing of your new home. If that's the case, we will ask you to bring your settlement statement with you to your new mortgage closing.

Gifts are an acceptable source of down payment, if the gift giver is related to you or your co-borrower. We will ask you for the name, address, and phone number of the gift giver, as well as the donor's relationship to you.

If your loan request is for more than 80% of the purchase price, we will need to verify you have at least 5% of the property's value in your own assets.

Prior to closing, we will verify the gift funds have been transferred to you by obtaining a copy of your bank receipt or deposit slip to verify you have deposited the gift funds into your account.

If you are purchasing a home, we will use the lower of the appraised value or the sales price to determine your down payment requirement.

It is still a great benefit for your financial situation if you are able to purchase a home for less than the appraised value; however our investors do not allow us to use this "instant equity" when making our loan decision.

If you were in school before your current job, enter the name of the school you attended and the length of time you were in school in the "length of employment" fields. You can enter a position of "student" and income of "0."