The ability of a borrower to repay a mortgage is evaluated through an investigation of their monthly income, assets, and monthly debt. This requires that you supply a lender with a substantial amount of financial information and documentation. A mortgage lender may require any or all of the following information, depending on your circumstances:

·         Federal tax returns for the last two years.

·         Pay stubs for the last one to two months

·         Employment details for the last two years, including employment dates and monthly income (gross).

·         Supporting information for any other income and assets you want to be included in your assessment, such as statements or books for savings accounts, IRA or 401K plans, and investments such as stocks and bonds.

·         Financial statements for your business if you are self employed; these must be prepared and signed by a certified accountant.

·         Recent statements of payment for your current creditors—these documents must include the name and address of the creditor, as well as the current balance of the account. This includes credit card debt, car payments, student loans, and any other current debts.

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