The Typical Loan Process  Pre-qualification / interview  Lender conducts an application interview, either by phone or in person.  Lender asks for salary information, outstanding debts, credit scores, employment history, bank account balances, etc. After this a lender may issue you a "Pre-Qualification" Letter.  Basically this is just a statement that according to the information you have provided to them, they will be able to loan X amount of dollars to you. Documents supplied to lender  Lender obtains all pertinent documentation from you, including copies of bank statements, tax returns, and any other information they need that you may personally have on hand. Documents can include:  · Bank account numbers, the address of your bank branch, and checking and savings account statements for the previous 2-3 months.  · Pay stubs, W2 forms, tax returns for two years (or other proof of employment and income verification). Balance sheets if you are self-employed  · Information on other debts such as car loans, furniture loans, student loans and credit cards.  · Any gift letters, if you are using a gift from a parent or relative or other organization to help pay the down payment and/or closing costs. This letter simply states that the money is in fact a gift and will not have to be repaid.  Lender Orders documents  Lender orders Credit report, appraisal of property, verifications of employment, termite inspection, flood zone verification, insurance policy with pricing, county tax information, and other documents pertinent to obtaining loan approval and finalizing estimated monthly mortgage payment with taxes and insurance included.    Loan submission  The loan package is assembled and submitted to the underwriter for approval.  At this time if you have any hits to your credit report you will be asked to write a letter explaining to the underwriter what the circumstances were, and why you still should receive a loan.  Documentation  Supporting documents come in and lender checks them for any problems.  At this time additional items may be requested (such as an updated bank statements and new payoff amounts for auto loans and credit cards). Loan approval Parties are notified of approval.  Loan contingencies in contract have been fulfilled. The lender may still do a final check of your credit report or bank so do not make any major purchase on credit, close bank accounts, or draw money from checking or savings without first asking your lender if it is okay.        Documents are drawn  Loan documents are completed & sent to title.  Lender sends final Good Faith Estimate to show what your monthly payments will be.  Borrowers come in for final signatures   Funding  Lender reviews the final loan package and checks for signatures.  Once it has been verified as complete funds are transferred by wire.