An Easy Guide to Applying for a Home Loan Once you find a house that meets your needs, preferences, and budget, you can apply for a home loan. To do this, you will need to select a financial institution and complete your application. Based on the lender’s terms, you may be able to apply online, in person, or by phone. Here’s a list of all the documents you will need to provide your lender when applying for a home loan. – W-2s for the last 2 years – Recent pay stubs that cover at least the last 30 days – Bank statements for all your financial accounts, including investment accounts – Signed sales agreement and purchase agreement – Signed business and personal tax returns (all pages along with relevant schedules) – A copy of your recent profit/loss statements (if you are self-employed) Keep in mind that your lender may require additional documents and information, based on the type of mortgage loan for which you are applying and your circumstances. During the mortgage application process, you should also expect your lender to ask for details related to your financial and employment history. The lender will also run a credit check, with your consent, as part of the process. So, it’s a good idea to check your credit score before you apply for a home loan. If you find that your credit score is not in your favor, consider waiting until it improves to apply for a home loan. It’s also important that you take your time and fill your application form as accurately as you can. Not disclosing all the required information or holding back documents that the lender has requested will delay the process. Once you receive a loan offer from the bank, it’s a good idea to lock in your interest rate. Given that interest rates can fluctuate on a regular basis, it’s important that you go through the terms and conditions of the loan and lock the interest rate in, so you are protected against rising rates. Once you receive the funds, ensure you either set up automatic payments or create reminders so you don’t fall back on your payments. A missed payment can affect your credit score and make it harder for you to receive loans in the future.