After You Apply

After you apply for a mortgage, you will work with your lender to determine a settlement date. You may also want to lock-in an interest rate at this time.

The Qualification Process

The next step is the qualification process. Your lender will review your application and decide whether or not to approve it. Be sure to answer any questions quickly and honestly. Follow up with your lender to get the status of your application.

If you're turned down for a mortgage, ask why. By law, you should receive a written disclosure statement from the lender indicating the principal reason(s) your loan was turned down. Common reasons include too much debt or credit that needs improvement.

If you get turned down, talk with your lender and develop a plan. You may try to qualify for a smaller mortgage or reapply after you've paid off some of your debt.

Alternative Documentation Loan

If you need to settle quickly, ask your lender about an alternative documentation loan. This type of loan allows the lender to accept your application with your last two W-2 statements and the most recent month's computerized pay stubs, provided you can meet certain additional requirements.

Closing Meeting

The final step in the mortgage process is the closing meeting. This is when all the documentation will be handled and you'll get the keys to your new home.