Getting approved is usually a very simple and speedy process.  The mortgage loan process consists of 4 basic steps.

Application - Processing - Underwriting - Closing

Step One: Application

Once you have found a suitable home and negotiated a contract to purchase, or build, or if you are simply refinancing an existing mortgage, your first step will be the application step. At this stage you will choose a lender, like Country Home Mortgage, and complete the loan application.  The lender will assist you  in completing the necessary application form on which you will supply information about yourself, your employment, your income and your assets and liabilities.   

The following information should be gathered prior to meeting with the lender. This Checklist can be printed out in an easy-to-read format by visiting the Checklists section of this site.

Loan Interview Materials Checklist

• Social Security Number/Date of Birth

• Most recent pay stub that shows year-to-date earnings

• W-2 Tax Forms for past 2 years

• Names, addresses, and telephone numbers of employers

• Account numbers and balances of checking, savings, and any other accounts

• Value of major personal property items

• Liabilities - provide name and address of each creditor and the monthly payment and total amount due

• Current address

  • If you own a home:  Provide property address, current market value, mortgage lender name, account number, current monthly mortgage payment, and outstanding mortgage balance

  • If you rent:  Provide property address, name and address of landlord, and current monthly rent payment

• Copy of fully executed sales contract, a copy of the listing form for the property, the legal description of the property, and receipts any deposits

There are some special situations that require you to supply additional information:

• If you are self-employed or work on a commission basis, you should bring your federal tax forms for the past two years and a current year-to-date profit and loss statement. 

• If you are separated or divorced, you should bring a copy of your divorce decree and separation agreement.  Also, bring documentation on alimony or child support payments you are required to pay or that you receive as income.

• If you include pension, disability, Social Security, or other public assistance as part of your income, you will need to bring a copy of an award certificate or a check from the issuing agency.

• If you have a bankruptcy, foreclosure, or any judgments against you over the past seven years, you will need to bring relevant information about the proceedings.

Step Two: Processing

The processing step starts with the ordering of an appraisal and credit report and mailing out verifications of employment (VOE) and verifications of deposit (VOD).  The loan processor reviews the credit report and verifies your debt and payment histories as VOEs and VODs are  returned.  If there are any late payments, collections, judgments or inquiries shown on the credit report, your written explanation is required.

The loan processor also reviews the home appraisal and checks to see if there are any property issues that may require additional comment by the appraiser.  Any repairs required by the appraiser must be reported.

Step Three: Underwriting

Once the loan is processed, it will then go to a loan underwriter for the underwriting step.  The underwriter reviews the loan package and decides whether to approve or deny the loan.  If more information is required to make a decision, the loan is put into suspense and information is requested from you.  It's very important that you respond immediately to requests for additional information, or you risk delays and possible expirations of locked interest rates.

Many lenders today use an automated (computer-based) underwriting system that helps mortgage lenders collect and analyze the information needed to process the applications.  At Country Home Mortgage, we use Fannie Mae's Desktop Underwriting system on our home loans.

Desktop Underwriter applies the same criteria to every loan application it processes.  The system helps to improve home ownership opportunities for more Americans by streamlining the application process.  Because less paperwork is required, it is able to deliver evaluations that are quick, thorough and unbiased.

Step Four: Closing

Once a loan is approved by the underwriter, it will move on to the last step…the loan closing.  At the closing, you will obtain your loan proceeds.  The closing will usually take place at an attorney's office where you will be given an explanation of the legal documents and the settlement charges which will be itemized on a settlement sheet.  When the closing is over, you are ready to move into or begin construction of your new home.  Or, in the case of a refinance, you can pay off those other debts and enjoy your new lower monthly payment.

Jump to our Resources section to learn about:

• The Biggest Mistake People Make When Shopping For A Mortgage

• The Importance of Good Credit