If you are given a paper application at bank or credit union, ask to bring it home and complete application when are you not pressured, and have all of your documents handy. If you are doing it online, use extra caution, watching out for mistypes, misspellings and make sure that you put correct info into correct form fields.

One way to smoothly go through mortgage application process is to create your own application package approximately one year and no later than six months prior to applying for a home loan. Gather all of your information, check your credit report and that way you can be aware of any surprises before you speak to a lender. Here are some of things you should prepare during this period:

List of debts Make sure you know exactly how much you owe and to whom money is owed. If you are married or you are purchasing home with a partner, help of a parent or some other second party, everyone should be aware of total sum of all individual and joint debts.

Gather your documents for auto loans, school loans, personal loans, other mortgage payments, alimony payments, child support payments, credit cards and any other type outstanding debt. Create a master list with all of items, account numbers, addresses, amounts owned, interest rates and monthly payments.

If you can pay off a significant portion of any one medium to large debt perhaps you should consider waiting an additional year before applying for loan.

Recent addresses If you have moved recently or have been upwardly mobile for a while, it can be difficult to remember all addresses, apartment numbers and cities where you lived. Your address history should also be on your credit report, but you need something else such as old statements or information from your address book to make sure that your credit report is accurate.

If you are like most investors you will finance most, if not all of purchase price for your home. Once you move in, home ownership honeymoon is over, you will probably get urge to speed up your payments and get out debt as soon as possible. But, should you deplete your cash reserves and increase your mortgage payments to pay off loans?

Are you comfortable with a large debt? The answer depends on your comfortable level with such a large debt and your tax situation. Your annual mortgage interest payments and property taxes are tax deductible.

Depending on your income and value of your home, you are probably looking at deductions of a few hundred to a few thousand dollars off your taxes. Once these deductions are schedule, you lower amount of your real income, can end up in a lower tax bracket and pay less tax.