Completing your loan application

Once you've found your home and your purchase contract has been approved, you're ready to complete your loan application.

During the loan application process, you'll work with your lender to determine your eligibility for a mortgage, folding in the terms of your loan, property details, down payment and other factors. If you qualify, you'll then discuss the terms and all the costs associated with the loan.

Here's what you can expect

  1. The mortgage application

    Your lender will work with you to complete a Uniform Residential Loan Application, and you’ll need to provide your most recent:

    • Paycheck stubs.
    • W-2’s.
    • Statements from all bank and investment accounts.
    • Statements for all outstanding debt.
    • Tax returns.
    • Proof of any supplemental income.

  2. The approval process

    Your lender will submit your information for approval, using the following to assess your eligibility:

    • Your 4 C’s: capacity to repay, capital (cash available), collateral (the home) and credit score.
    • Housing expense ratio: the percentage of your gross monthly income that will be used to pay your mortgage.
    • Debt-to-income ratio: the percentage of your gross monthly income that will be used to pay your mortgage and other debts.

  3. The costs

    Within three days of completing your application, your lender will send you a loan estimate that includes:

    • The terms of your loan and all estimated costs.
    • Your APR, finance charge and payment schedule.

  4. Final steps

    If you're approved, your lender will schedule a home appraisal to determine the market value of the home.