What to Expect when Applying for a Home Mortgage Loan

Hand using pen to fill out mortgage loan document.So, you’ve decided on a piece of property and are ready to get approved for the home loan. After you’ve reviewed your lending options and the factors that go into determining your monthly mortgage payment you’ll want to reach out to some banks, credit unions, or other mortgage lenders to get quotes.

Required Documentation for Mortgage Applicants

Before heading in to see your preferred lender to apply for a loan, make sure you are aware of the paperwork that most lenders are going to require for your mortgage application. It can be a lengthy list, especially as mortgage lenders tighten borrower eligibility guidelines, so take the time to understand what you will need to have ready:

  1. Tax returns and W2
  2. Name and address of employer or offer letter for employment
  3. Social security card or number
  4. List of all current creditors and such (credit cards, student loans, child support, car loan, etc.)
  5. Investment accounts including 401(k)s, IRAs, cryptocurrency, and brokerage accounts
  6. Home sales contract if you already have the home picked out
  7. Government-issued ID card

Lenders may require more or less documentation than this, but as a guideline, be prepared to present all of the above.

Questions Mortgage Lenders Ask

Next, there are questions that are most commonly asked by lenders, and preparing your answers ahead of time could help ease the process. These questions will fall mostly into the following categories:

  • Employment and other income
  • Outstanding debts
  • Assets and cash reserves
  • Down payment amount
  • Purpose of loan
  • Property use
  • Property type

The following themes in responses will help ease the lender’s concerns, and work in your favor:

  • You have a steady income and long-term employment
  • You have low debt with no recent major purchases
  • The property is to be used as a primary residence (as opposed to investment or vacation properties)
  • You have a decent amount of money to use as a down payment

Questions to Ask a Mortgage Lender

In response to the lender’s questions, it is important that you ask questions of your own. The answer to each question will allow you to compare potential lenders and decide which lender is best for your particular situation.

Here are a few questions to consider asking each mortgage lender:

  1. What types of loans do I qualify for?
  2. What will the interest rate on each mortgage be? Will this change and, if so, when and by how much?
  3. What origination fees will be charged?
  4. What are my options to pay points in return for a rate reduction?
  5. What are the total closing costs?
  6. Is there a prepayment penalty? If so, before what point, and what is the penalty?
  7. What is the required minimum down payment? If I present a higher down payment, will it reduce my interest rate?
  8. What additional documents are needed?
  9. How long will the approval process take?
  10. What are the possible reasons for a delay in an approval decision?

After discussing these items with each lender, it is time to apply for the mortgage loan by filling out the appropriate paperwork. Be confident in your decision after choosing the correct type of loan and best mortgage lender for this piece of real estate. A good combination of the two will allow you to move into your dream home quickly.

Next Up, What to Expect After You’ve Submitted Your Loan Application

Now that you have applied for a mortgage loan with the lender of your choice, here are some of the items to expect after the mortgage application is submitted.

Borrow up to $50,000 with low fixed rates!

Posted on February 3, 2021 by in Mortgage Lending

Comments & Discussion



2 Responses to “What to Expect when Applying for a Home Mortgage Loan”


  • On July 8, 2011, APRfinder.com wrote:

    Thanks for the feedback, Debe. I appreciate it!

  • On July 8, 2011, Debe Maxwell, CRS wrote:

    Great information for the consumer! I just finished one of these lists and it’s not nearly as thorough as yours–I guess that’s why we both do what we both do best!




  • Advertising Disclosure Some financial products mentioned on this site are from companies that are partners with APRfinder. If you sign-up for a product or service through a link published on this site we may receive financial compensation for it.
  • Featured Mortgage Offers

    FHA Rate Guide logo.

    Home Purchase & Refinance Loans

    Compare offers from multiple mortgage lenders.*
    Low Rates* Check Rates on FHARG site
    loanDepot logo.

    Home Equity Lending

    Access up to $250,000 in as little as 3 weeks with a home equity line of credit.*
    Up to $250K* Check Rate on loanDepot site