The loan approval generally begins with an initial interview where the prospective homebuyer and the mortgage professional discuss the potential loan. You will need to provide information to verify your income, assets and long-term debts.

Often people prefer to meet with the mortgage company before looking for a home to determine in advance what price range they can realistically afford and the 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:

Employment/Income

• Provide most recent pay-stubs for 1 month
  
• Provide W-2's for the past two years
  
• If self-employed or commissioned, provide all pages and schedules of last two years personal tax returns
  
• If self employed, provide all pages and schedules of last two years business tax returns and corporate K-1's
  
• If retired, provide benefit award letter, last two years 1099's, and all pages and schedules of last two years tax returns
  
• If any rental income is received, provide copy of current lease agreement
  
• If VA and active duty personnel, copy of Statement of Service Letter and Off Base Housing Authority Letter

• Provide ALL pages of most recent 2 months statements for all accounts; including all checking, savings, stocks, IRA, 401k, etc.
  
• If funds to close will come from a gift, complete the gift letter and the following:
  a. from the donor - bank statements showing the funds in the donor's account and
  a copy of the check from the donor's account
  b. from the borrower - a copy of the deposit slip showing the gift check deposited
  into your account
  
• If funds to close will come from sale of home, copy of Hud-1 from sale of home and deposit slip showing proceeds deposited into bank account

• Copy of driver's license
  
• Copy of divorce decree
  
• Copy of bankruptcy papers, including all schedules and discharge, and credit explanation letter for reason for bankruptcy
  
• If VA, Certificate of Eligibility or copy of DD214
  Having these items on hand when you visit the mortgage company will help speed up the application process. Usually a credit report fee and an 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.

After the initial meeting with the mortgage company, you should have an idea if you qualify for the size and type of loan you want. The mortgage company should let you know within a few days if you qualify for the loan. 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.