Buying Advice Buying Your Home

Applying for a Mortgage

Once you’ve made the decision to become a homeowner and picked the house, you may need to apply for a loan. This process might seem daunting, but your lender will guide you through it. The process will be even easier if you know what to expect and prepare for it.

Here are the high-level loan application steps:

1. Prepare required documents:
   • Two years of employment history, current employment status and salary are needed. Employment letters can be used to explain gaps in employment.
   • Two years of W-2s (this does not apply if self-employed) and tax returns allow the lender to be sure that your salary is high enough to make the mortgage payments every month.
   • Most recent pay stubs for the last 30 days tell the lender that you’re still earning money similar to the amount on your tax returns. (This does not apply if self-employed, but the lender will likely require a profit and loss statement.)
   • List of assets, including bank statements, let the lender know that you have the money to cover the down payment, closing costs and a reasonable emergency.
2. Submit the application. Once you’ve prepared the required documents, the first step with the lender is to apply for the home loan. Of course, you will need to provide personal information, as well as information about the property you’ll be purchasing, such as the address and estimated purchase price.
3. Provide your documents. Submit your documents, such as pay stubs, W-2s, bank statements and employment history.
   
4. Get pre-approved in as little as 24 hours. Once your loan application is submitted, you should receive your pre-qualification in as little as 24 hours.