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Now that you have decided on a property and type of mortgage, your lender will provide a mortgage application, which will ask you to provide personal information, such as your income, assets, liabilities, and a description of the property. You may need to pay an application fee that covers the lender's processing costs. Be sure to ask if the application fee is refundable. In this step, you will be required to submit documents and information that demonstrate your source of income, your credit history, your tax payments and other info. Have a glance at our printable checklist to see what documentation is required when you apply for a mortgage. When you apply for a mortgage, several things happen:
* Your lender will get an appraisal. The appraisal will determine the market value of your new home, which will be used as collateral for your loan. You'll be charged a fee for this service; it will likely be included in your closing costs. * Your lender will look at your credit report to verify your credit history. You'll be charged a fee for this document as well. If you're pre-approved, this step may have already been completed. * Your lender will verify your personal information, such as bank accounts and place of employment. Your lender may ask you for your 2 most recent monthly bank statements or pay stubs. If you can't provide them, a Verification of Employment (VOE) and Verification of Deposit (VOD) will be mailed on your behalf to verify the last 2 years of employment and banking information.
After you apply for a mortgage, your lender will work with you to determine a settlement date. You may also want to lock in an interest rate at this time. The next stage is the qualification process. Your lender will review your application and decide whether or not to approve it. Be sure to answer any questions quickly and honestly. Follow up with your lender to get the status of your application. Consider that the processing of the loan can take up to 40 days or more. If you're turned down for a mortgage, ask why. By law, you should receive a written disclosure statement from the lender indicating the reason(s) your loan was turned down. Common reasons include too much debt or credit that needs improvement. You can also talk with your lender and develop a plan. You may try to qualify for a smaller mortgage or reapply after you've paid off some of your debt. If the mortgage is approved, on the other hand, you have reached the final step in the mortgage process: the closing meeting. This is where all the documentation is completed, up-front costs are paid, the necessary papers signed and you get the keys to your property. | 
