Explaining the loan application process: The loan officer is the person who is your primary contact throughout your loan. The lender is the entity that provides the funds for the loan.
Filling Out the Application
There are standard forms to be completed when applying for a loan. Some mortgage lenders keep these on their websites so you can complete and submit the documents online. The information will be verified and used to qualify you for your loan. So take the time to answer questions accurately.
Documentation
The lender will need copies of the documents you began gathering for your pre-qualification
- Either two years of W-2 forms from your employer or two years of tax returns if you are self-employed
- Recent pay stubs
- Three months’ bank and money market statements
- Brokerage, mutual fund, and retirement account statements
- Proof of other income sources (alimony, trusts, rental income, etc.)
- Auto/boat /student/miscellaneous loans
- Driver’s license or form of ID
- If you’re not a US citizen, then a copy of your green card or visa
- Copy of any existing mortgage debts if you are applying for a home equity line of credit or another mortgage
Stay in Communication
The lender will have an analyst, usually called an “underwriter,” crunch your numbers and verify your documentation to confirm your ability to repay the loan. Once you are in contract on a property, there may also be a loan approval committee that will meet to review the underwriters’ conclusions regarding your creditworthiness and to evaluate the property on which they are lending. This is called the underwriting process, and questions are bound to arise. Be sure to respond to your lender’s requests promptly. Your Realtor should also check in with him periodically.
