The loan approval process generally begins with an initial interview where the prospective home buyer and the mortgage professional meet to discuss the potential loan. You will need to bring information to verify your income and long-term debts.

It is a good idea to meet with the loan officer before house hunting to determine in advance what price range you can afford and the mortgage amount for which you qualify. This Pre-Qualification can save a lot of time and heartache by giving you a realistic price range.

For your first meeting with your loan officer, you should bring:

• A signed, receipted purchase contract for the house (if a purchase)
• Your bank statements for the most recent 2 months
• Pay stubs, W2 or 1099 forms, or other proof of employment and income verification
• 2 years tax returns and year-to-date Profit & Loss Statement, if you are self-employed
• Divorce settlement papers, if applicable
• Credit card bills for the past few billing periods, or canceled checks for rent or utility bill payments, to show payment history and amount of revolving debt
• Information on other consumer debt such as car loans, furniture loans, student loans and retail credit cards
• Any gift letters, if you are receiving funds from a parent or relative or other organization to help pay the down payment and/or closing costs. This letter states that the money is a gift and will never have to be repaid.

Having these documents available when you see your loan officer will help speed up the application process.  The Residential Mortgage Credit Report (RMCR) fee ($70.38) and the appraisal fee (usually around $350) will have to be paid when you submit the mortgage application.  Of course, the appraisal is ordered only after you have successfully bid on a home and had your offer accepted by the seller.  Generally, there is no fee for pre-qualification other than the "In-File" Credit Report ($13.50).

After the initial meeting with the mortgage company, you should have a good idea if you qualify for the size and type of loan you want.  The mortgage company should let you know if you qualify for the loan within days. If you are denied a home loan, the mortgage company must notify you in writing with explanation for the decline.  If this happens, the loan officer will usually discuss alternative options with you.