Understanding the loan process

How Loan Process Works

You have been looking at houses for months and months, and you have finally found it, the house that's just right. Now, you're anxious to buy your new home, move in, and get settled. But you still have an important task ahead of you - getting a mortgage loan.

This article explains about dealing with mortgage lenders. It tells you where to look, what to look for, and what takes place when you apply for a mortgage. Knowing what to expect, especially if you are a first-time home buyer, may make it easier for you to get through the process.

Learning Your Rights

You'll also learn about your legal rights to fair lending and what you have a right to expect in fair treatment. The Fair Housing Act and the Equal Credit Opportunity Act make it unlawful for a lender to decide whether you qualify for a loan, or to offer less favorable terms, for reasons such as your race, national origin or sex and other prohibited factors.

Step by step loan process

Required Documents For Loan

If you are applying for home loan as second owner or first time home buyers, you will need following list of documents

• A copy of your most recent bank statements (this includes your daily checking account as well as any money market, savings or other accounts)
• Your most recent W-2 (or entire tax return if you're self-employed)
• Proof of IRAs or retirement accounts and their current balances
• Proof of any stocks or mutual funds you own outside of retirement accounts
• Your driver's license
• You may need to provide more proof of income if needed by bank