Loan Process

If you're like most people, you'll probably need to secure a mortgage loan for your new house. Application for a home loan can take as little as one week and up to a month, depending on the type of mortgage.

Your lender or mortgage broker will be able to give you a better idea of the actual time it will take from application to approval. However, in general, conventional loans are processed more quickly than FHA or VA home loans.

The following is a step-by-step outline of what to expect during the loan application process:

• Application
• Bring all required documentation.
• Good Faith Estimate of Closing Costs
• Truth-in-Lending statement
• Processing
• Verification of employment
• Verification of deposits
• Credit report
• Underwriting
• Clear conditions
• Purchase Homeowner's Insurance
• Determine funds needed for closing
• Schedule appointment for closing
• Prepare deed and mortgage note
• Closing and Title Transfer

Application Checklist

The following checklist will facilitate your mortgage loan interview. The checklist includes most of the information that you and any co-borrower will need to supply. However, some lenders have slightly different requirements, so you may want to contact your lender before the interview to ensure you bring the correct types of information.

1. Social Security Number/Date of Birth
2. Paycheck
   Most recent pay stub that shows year-to-date earnings.
3. W-2 Tax Forms
   Original copies sent to you by the Internal Revenue Service for the past two years.
4. Employer Information
   Names, addresses, and telephone numbers of employers for the past two years
5. Account Information
   Account numbers and current balances of checking, savings, and any other accounts.
6. Current Assets
   Individual Retirement Accounts (IRAs), CDs, stocks, bonds, etc.
7. Personal Property
   Value of property that can include life insurance, retirement accounts, cars, etc.
8. Liabilities
   Auto loans, student loans, credit cards, and other installment debt -- provide name and address of each creditor and the monthly payment and total amount due.
9. Current and Previous Addresses
   If you own a home: Bring the property address, current market value, mortgage lender name, account number, current monthly mortgage payment, and outstanding mortgage balance.
10. If you're renting: Bring the property address, name and address of the landlord, current monthly rent, and previous address/landlords if you've lived in your current address for less than two years.
11. Agreement to Purchase
    A signed copy and any amendments, a copy of the listing form for the property, the legal description of the property, and receipts for or down payment deposits.

There may be some special situations that require you to supply additional information. These include:
If you are self-employed or work on a commissioned basis, you should bring your federal tax forms for the past two years and a current year-to-date profit and loss statement.

If you are separated or divorced, you should bring a copy of your divorce decree and separation agreement. Also bring documentation on alimony or child support payments you are required to make or you receive as income. Proof of this income can be the clerk of court's history of payments or canceled checks for the past year.

If you include pension, disability, Social Security, or other public assistance as part of your income, you'll need to bring a copy of an award certificate or a check from the issuing agency.

If you have a bankruptcy, foreclosure, or any judgments against you over the past seven years, you'll need to bring relevant information about the proceedings. Such information includes a copy of the bankruptcy discharge and schedule of both debts and assets. An attorney's letter that discusses the outcome of the proceedings should be included if there are judgments against you.