There are many sources for home loans including banks, credit unions. mortgage companies and mortgage brokers. Your Realtor may give you several names of lenders who have proven reliable in their previous transactions. Apply for your loan as soon as possible. In fact, it’s very important to know what you can afford before you begin looking for your new home. It can give you more bargaining power when negotiating with a seller, especially in today’s market where multiple offers may occur. A lender can prequalify you for a certain price range and help you avoid disappointment later.

Your lender will mail out verification requests and order an appraisal on the property you are buying. Remember, if your lender asks for additional items, please comply promptly with those requests to avoid delaying loan approval.

Nest, you should order hazard insurance. Hazard insurance covers the dwelling itself and is required by the lender to protect their risk in your home. Your lender will explain the necessary hazard insurance coverage to you.

Contact your insurance agent early in the process because this coverage information must be provided so the lender can release the loan funds to the title company. Hazard insurance is one of the items frequently postponed until the last minute and this can result in delaying the closing. Order your insurance as soon as your loan is approved and then furnish the escrow officer with your insurance agent’s name and phone numbers.

After loan approval and just prior to the closing date, the lender will send the loan documents to the title company and the escrow officer will prepare an estimated settlement statement. This statement indicates what funds go where and, at this time, your escrow officer can tell you how much money you need to bring to your closing appointment. Be aware that this amount may be higher or lower than previously estimated due to changes in items such as prepaid interest, prorated fees, impound accounts and any other applicable charges.

What You’ll Need for your Loan Application

Loan applications require personal and financial information. Be prepared to provide the following, for the borrower and co-borrower, to the lender:

• Addresses of residences for the last two years

• Social security number and date of birth

• Driver’s license or other valid identification

• Names and addresses of employers for the last two years

• Two recent pay stubs showing year-to-date earnings

• Federal tax returns for the last two years

• W-2’s for the last two years

• Last two months of statements for all checking, savings and other accounts

• Real estate loans: names, addresses, account numbers and payment amounts on all loans for other real estate you own

• Loans: names, addresses, account numbers and payment amounts on all loans

• Credit cards: names, addresses, account numbers and payment amounts on all your credit cards

• Addresses and values of other real estate owned

• Value of personal property . . . your best estimate of the value of all of your personal property (autos, boats, atv’s, furniture, jewelry, televisions, stereos, computers, other electronics, etc.)

• Necessary funds to pay for the credit report and appraisal