If you are earning money in a savings account at 2% and paying anything over 2% on your debts you are sliding backwards financially and you'll never get ahead. It's basic mathematics.

If you earn 20 bucks for five years in your savings account you'll have $100. If you pay $190 in interest on your $1,000 credit card after five years you will have paid $950 in interest charges.

In other words you have wasted, lost, burned or flushed $850 by having a savings account. ($950 - $100 = $850) OUCH!

What can you do? Pay off that credit card and use that as your emergency fund. It's not best way to do it but it's better than earning 2% and paying anything over 2%.

So, while stock market is on it's roller coaster and economy is challenged your best investment, bar none, is your debts! Get them paid off!

Here a list of documents your Mortgage Lender will want to initially see copies of:

*W2's from last 2 years *Tax Returns from last 2 years *Pay stubs from last 30 days *Bank & Brokerage Statements from last 3 months

Additional documentation will be required depending on your specific situation and as process progresses.

Your Mortgage Lender will go through a loan application with you, which covers questions related to your current residence, employment status, marital status, etc. There will be a series of disclosures you'll have to sign as well - some required by State or Federal Government informing you of your rights in process.

With application and disclosures signed, supporting documentation you provided, and an understanding of what you are hoping to accomplish, Mortgage Lender is ready to submit your "loan" through what's called "Automated Underwriting". Within minutes, unless your situation requires an underwriter to personally review your file, you will have an answer to your loan application.

Now that you have an approval, your Mortgage Lender will issue a Pre-Approval letter outlining terms of your approval. Your Realtor will request a copy of this letter (typically before they begin showing you homes) and will include a copy with any offer you make on a property.

Now it’s time for fun part – looking for homes!

Chris Rocks is a successful Mortgage Consultant and writer based out of Chicago, IL.

Website URL: http://www.loansbyrocks.com