Once you’ve decided to proceed with a loan, the lender will need to review your financial information carefully. You may be asked to provide additional financial information and to submit documents to verify the information you previously reported.
What to do now
Gather your documents
- Use our application packet checklist as a guide for what to gather, if you haven’t already.
- Ask your loan officer what additional documents you may need based on your particular situation.
- Keep all your documents in one place so you won't have to waste time looking for them if the lender needs more information.
Submit your documents
- Ask your loan officer for precise instructions on how and where to submit the information.
- Submit copies. Keep your originals.
- Confirm that the right person has received your documents.
Be proactive and responsive to your lender
- Make sure your loan officer has your current contact information.
- Check your email, voicemail messages, and postal mail frequently to make sure you don't miss any requests for more information.
- Respond quickly to requests for additional documents.
What to know
A good lender is a thorough lender
It may seem like your lender asks you to provide too many or very personal documents, but to give you a loan, the lender needs to decide that you can pay it back. This process benefits you too — providing full information now helps make sure you can keep your home later.
Expect to work with multiple people associated with your lender
Lenders have specialized staff that work on processing and underwriting (approving) your loan.
If you receive regular income from a non-employment source, be prepared to submit additional documentation
You may have regular income from sources other than employment, such as child support, alimony, or rental income. If you rely on this income, the lender needs proof that this income can reasonably be expected to continue in the future at the same level.
If you have made one or more large deposits into your bank account recently, be prepared to document the source of the money
It’s common for home buyers to have large deposits in their bank records, especially when transferring money between accounts in preparation for a home purchase. Lenders are generally required to verify the source of your income and down payment funds. Requirements vary, so ask your lender what documentation you need.
How to avoid pitfalls
Don’t submit incomplete documents
- Include every page of multi-page documents, even ones marked “intentionally left blank.”
- Make sure that the full website address (URL) is included on the bottom of each page when printing online documents.
Some kinds of loans do not allow you to use gift funds for the down payment
If some of your down payment funds are a gift, ask your loan officer now whether the gift funds are allowed with the loan you’ve chosen.
You can’t bring actual cash to closing
Your lender, real estate agent, and even your Loan Estimate form all talk about your “cash to close” or the amount of money you need to bring to closing. The money you bring to closing typically needs to be in the form of a cashier’s check or wire transfer from a bank. Confirm with your closing agent what form of payment you will need.