The loan approval process generally begins with an initial interview where you and the mortgage professional meet to discuss the potential loan. You will need to bring information to verify your income and long-term debts.
You may prefer to meet with the mortgage company before house hunting to determine
in advance how much
you can afford and the mortgage amount for which you can qualify. This
step is called pre-qualification and can save you time and trouble by making
certain you are looking in the correct price range.
To complete the 1003 Mortgage Application (.pdf), you will need to gather:
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A purchase contract for the house (if you have one)
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Your bank account numbers and the address of your bank branch, along with
checking and savings account statements for the previous 2-3 months
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Pay stubs, W2 withholding forms, tax returns for two years, or other proof of
employment and income verification
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Credit card bills for the past few billing periods, or canceled checks for rent
or utility bill payments, to show payment history and amount of revolving debt
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Information on other consumer debt such as car loans, furniture loans, student
loans and retail credit cards
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Balance sheets and tax returns, if you are self-employed
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Any gift letters, if you are using a gift from a parent or relative or other
organization to help pay the down payment and/or closing costs. This letter
simply states that the money is in fact a gift and will not have to be repaid.
Having these items on hand when you visit the mortgage company will help
speed up the application process. Usually an application fee and the
appraisal fee will have to be paid when you submit the mortgage application.
After the initial meeting with the mortgage company, you should have a general
idea if you qualify for the size and type of loan you want.
After the mortgage application, the mortgage company should let you know if you qualify for the loan within days.
Meeting a Mortgage Professional