You will probably meet with your loan officer to complete your loan application, although in some cases the lender will have you fill out the application before your interview. Your lender will probably use the Universal Residential Loan Application, which is a standard four-page application. You will be asked to provide detailed information about your income and financial history and about the home you're planning to buy and terms of that agreement. Gathering all this information before completing the application will save you time and prevent delays in the processing of your loan. Our Loan Application Checklist will help you gather the documents you'll need. Your lender will have to verify information that you give him, and will need your approval to do so. So, the lender will probably have you sign a Verification of Employment (VOE) form, which will be sent to your employer to verify your employment and salary, and a Verification of Deposit (VOD) form to verify account balances with your bank. The lender will also run a credit check to verify the information you provide regarding your debts, so you will want to be as accurate as you can. Any discrepancies will require explanation from you, and may cause delays in the processing of your loan. If you have had credit problems in the past, you will want to explain them to your lender. And you should probably file a written explanation with your loan application. If the problems have been corrected and payments made on time for the past year, your credit history probably won't prevent you from getting a loan. The final section of the loan application includes questions about the borrower's race and gender. Lenders are required to ask these questions for use by the federal government in monitoring lenders' compliance with fair housing and equal opportunity laws. Provision of this information is voluntary, however, and will not affect the processing of your loan. Decisions You will be asked to make several decisions when you apply for your loan. You will probably already have decided on the kind of mortgage you would like, and probably know the amount you need to borrow. If not, you should make sure you know what mortgages are available and what type of financing best fits your needs. How much you need to borrow depends on the purchase price of the house and the amount of your down payment (which you also need to declare when applying for your mortgage loan). You may have been pre-qualified for the amount you intend to borrow, but you should remember that your pre-qualification is not a guarantee. If your application shows you to be creditworthy and you are not asking for an unreasonable amount, it is likely that a loan for which you pre-qualified will be approved. There are also a few other decisions you will have to make at the time of application. First, you will agree with your lender on a settlement (or closing) date, which should occur by the proposed time of closing on the sale of the house. Also, you will be given the option to "lock in" the interest rate of your loan. The rate quoted to you when you apply may change before your loan is processed. A lock-in guarantees you that rate as long as the loan closes within a specified time period. If you want to lock in that rate, make sure you lock in for a period that will cover the time until you expect the loan to close. If you expect rates to fall, however, and want to take the risk involved, you can let the rate "float" until you close on the loan. In that case, you will accept the rate available at the time of closing. Costs There are several costs involved in filing your loan application. You will have to pay for the credit report mentioned earlier. You will also pay an application fee, which covers the cost to the lender of processing all your loan information, and an appraisal fee for an estimate of the value of the property you intend to buy. Sometimes this appraisal fee is included in the application fee. Anyway, remember to bring your checkbook along with all your information. After you apply Your lender is required by law to inform you of several things within three business days of your loan application. (1) The Annual Percentage Rate (APR): includes interest, and certain closing costs and any points and other charges on your mortgage. Since up-front costs are factored over the life of the loan, the APR will be slightly higher than the interest rate on your loan. (2) You will also be given a Good-Faith-Estimate, an itemized estimate of the costs to close (or settle) the loan. (3) And, you will be given a government publication called Settlement Costs: A HUD Guide, which describes the closing process, informs you of your rights, and explains closing costs. You may also be contacted again by your lender for more information about yourself or about the property. Don't worry--requests for additional information do not necessarily mean that anything negative is happening with your loan. Just respond promptly with any needed documentation to prevent delays in your processing. And, remember, your loan officer is working to get you the loan. Lenders don't make money unless you get your loan, so rest assured that they are on your side in this process.