Loan Process

Once you decide to move forward with buying your own home, you will begin the loan application process. Applying for a loan requires a variety of documents: tax forms, pay stubs, bank statements, and more. It may seem overwhelming at first, but using the following checklist can help the application process go more smoothly.

Information you’ll need for your mortgage loan application includes:

• Social Security number and date of birth
• Paycheck—Most recent pay stub showing year-to-date earnings
• W-2 tax forms—Copies of the last two years
• Employer information—Names, addresses, and telephone numbers of employers for the last two years
• Account information—Account numbers and current balances for checking, savings, and any other accounts
• Current assets—Things of value that you own, such as a car, Individual Retirement Accounts, CDs, stocks, and bonds.
• Personal property—Value of property, including life insurance, cars, valuable tools, etc.
• Liabilities—What you currently owe for things such as auto loans, student loans, credit cards, and other installment debts. You will need names and addresses of each creditor, monthly payment, and balance due.
• Current and previous addresses—Do you currently own your home or rent? If you own a home, provide your address, current market value of your home, the monthly payment, and the balance left to pay on your loan.

Once you submit your application, the bank will let you know if you have been approved for a loan, usually within a week. Don’t worry if you aren’t approved—you can talk to the bank and learn what to do next time to improve your chances of getting a loan. If you have been approved, congratulations! You are on your way to becoming a new homeowner.