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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: - 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
statements for the previous 2-3 months
- Pay stubs, W2 withholding
forms, tax returns for two years, or other proof of employment and income verification
- 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 cards
- Balance sheets and tax returns, if you are
self-employed
- 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. 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. 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. 
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