The loan approval process generally begins with an initial interview
where the prospective home buyer and the mortgage professional
meet to discuss the potential loan. You will need to bring information
to verify your income and long-term debts.
Often people prefer to meet with the mortgage company before
house hunting to determine in advance what price range they can
realistically afford and the mortgage amount for which they can
qualify. This step is called pre-qualification
and can save you much time and trouble by making certain you are
looking in the correct price range.
For your first meeting with the mortgage
company, you should bring:
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. This is only done
after you have successfully negotiated on a home and have had your
offer accepted by the seller. Generally, there is no fee for pre-qualification.
- A purchase contract for the house (if
you have one)
- Your bank account numbers and the address
of your bank branch, along with checking and savings account
Californiaments for the previous 2-3 months
- Pay stubs, W2 withholding forms, tax
returns for two years, or other proof of employment and income
- Divorce settlement papers, if applicable
- 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
- Information on other consumer debt such
as car loans, furniture loans, student loans and retail credit
- Balance sheets and tax returns, if you
- 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 Californias that
the money is in fact a gift and will not have to be repaid.
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. The mortgage company should let you know if you qualify
for the loan within days. If you are denied a home loan, the mortgage
company must explain the reasons. If this happens, the mortgage
company will usually discuss any options with you.