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People usually apply for a second mortgage or home equity loan when they need money for debt consolidation, to pay large expenses or for home remodeling and home improvement. Second mortgages are generally categorized as fixed interest rate home equity installment loans (HELOANS) and adjustable mortgage rate home equity lines of credit (HELOCs). Which you choose depends on your needs, but the application and approval process is similar for both. These nine tips will help your loan process be as hitch-free as possible:

1.    Compare options like mortgage refinancing and other loan options to determine if a second mortgage is the best choice.

2.    Make sure you can tell lender what the purpose of the loan is. Your answer will help determine whether or not you are approved.

3.    Check your credit report for errors and get your FICO scores (myfico.com/12) because lenders will review your FICO score to determine your loan rates. Check “How to Improve Your Credit Score” for more information on cleaning up your credit.

4.    Compare several home equity loan options.  Discuss the loan programs with your broker or lender and find the best loan for your situation. Getting a good interest rates isn’t a bad idea either.

5.    When applying for a loan, you will get a mortgage checklist from your lender containing the list of paperwork you need to close the loan, including:
•    Copy of deed to property.
•    Recent tax appraisal.
•    Last two years’ W-2′s, tax returns and current pay stub, or two years’ tax returns if self-employed. Be sure to include all schedules.
•    Proof of income from alimony, child support, disability payments, lawsuit settlement, inheritance or other income source.
•    Copies of your last 3-6 bank statements.
•    List of all open credit accounts (account numbers, payment amounts, and balances).
•    Your current mortgage statement.
•    Homeowners insurance information (name, account number and phone number of agent).

So the time has come for you to purchase a home and take on home ownership.

Home ownership will be perhaps the largest responsibility you ever take on in your life. But it will most likely be the most rewarding thing you ever take on in your life as well.

But before you go out and buy that rake, snow shovel, and lawn mower to keep up with all of your towns ordinances, you will first need to obtain a  mortgage to purchase the home.

Although obtaining a mortgage takes some time and research, as well as a lot of paperwork, it doesn’t have to be all that painful. Just take your time, educate yourself as much as you can, and do your best to put yourself in contact with the right people.

One of the very first things you will need to do is locate a realtor to point you in the right direction.

Realtors are not hard to find, but before you go through the yellow pages, see if you can’t have one referred to you by a friend or relative who had a positive experience with their own realtor.

The very first thing your realtor will ask you will be if you have been preapproved for a mortgage, I can guarantee it.

So here will begin your quest for a mortgage. There are literally thousands of lenders throughout the United States, all carrying many programs for all borrowers with many different needs. Such as FHA, Va, and Interest only, just to name a few.

One of the best resources for finding information on the mortgage industry, and finding a good lender is the internet.