Video — Loan Basics — How To Apply For A Mortgage

How do you apply for a mortgage? First, assemble this information:

Tax returns and bank statements for the past 2 years.

W-2 forms for the past 2 years

Pay stubs for the past 3 months

Documentation of any long-term debts

Proof of any non-payroll income

When youre far enough in shopping for a home to make an offer, add these things:

Address and description of the property

A sales contract on the home

Identify lenders and submit a loan application. If your credit is frozen, be prepared to unfreeze it for the credit history and credit-rating reports the lender will order.

The lender will order an appraisal and (in some cases) possibly an inspection. Expect additional questions and clarifications as they go through the process of evaluating your ability to repay the loan.

The process usually takes more than a week, and delays of up to 6 weeks arent uncommon. Be patient, and keep copies of everything.