When applying for a mortgage, always make sure that this is the best deal you can get – if you feel shortchanged, do some more research. Mortgages require massive paperwork, so be prepared, you’ll need:

1. Proof of employment/income – Payroll stubs, tax returns, W-2 forms

2. Current Expenses – canceled checks for credit card bills, utility bills for the last couple of months.

3. Documentation of other loans – i.e. auto loans, personal loans.

4. Account information for the last couple of months – savings/checking/money market.

5. Gift Letters – If someone will be giving you money to go toward the mortgage that does not need to be repaid, make sure to have signed documentation for it.

When you actually apply for the mortgage, there’s a ton of paperwork involved, but there’s also a ton of fees involved for this paperwork:

1. Application fee

2. Attorney fees

3. Title Search fees

4. Point(s)– 1 point equals 1 percent of the mortgage amount you are granted, depending on the lender, you could be charged one or more points of the mortgage up-front. Volunteering to pay extra points up-front can reduce your interest rate.

5. Property Appraisal – The lender will send someone to assess the value of the property, but you will have to pay for it, so you might want to inquire about whether you can hire your own…very unlikely, but worth a try.

6. Miscellaneous Paperwork fees
The Truth in Lending Act requires lenders to disclose all the fees involved with applying for the mortgage before any fee is charged so remember to read everything. If there is anything you are unclear or, make sure you ask the lender before signing anything.

Comparison shopping works to your advantage, however make sure not every single lender pulls you credit report. If you could, order your credit report and bring a copy with you to show them. In the end, if you end up borrowing from them, they will pull your report. In the mean time you s should ask them to assess the loan terms based on the copy you hand them. Each time a lender pulls your credit report, a hard inquiry is posted because you went out and sought credit. If you go to 29 lenders and you get 29 inquiries posted within a week, it makes you look like you’re desperate for credit. Some creditors will be able to use logic and say “well if this person is shopping for a mortgage, these inquiries are justified”, however some lenders will simply come to the conclusion that you’re desperate for credit which can hurt your chances for approval. This may or may not lower your credit score, the factors that determine the credit score model are undisclosed.

Some lenders offer no fees, but beware because less or no fees are usually complemented by high interest rates. That applies in reverse as well, higher fees usually accompany low interest rates.