Once you've chosen a loan and a home, the formal process begins. It's largely about documentation and verification. Being organized keeps things moving and reduces stress.
Documents You'll Need
Lenders verify your income, assets, and debts. Commonly requested items include:
- Recent pay stubs and W-2s (or tax returns if self-employed)
- Bank and investment account statements
- Identification and Social Security details
- A list of debts and monthly obligations
- Gift letters, if part of your down payment is gifted
Processing and Underwriting
A processor organizes your file, and an underwriter evaluates the risk — confirming your finances and that the loan meets guidelines. They may request additional documents; respond quickly to avoid delays.
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Compare Loan OffersThe Appraisal
Your lender orders an appraisal to confirm the home is worth the price. If it appraises low, you may need to renegotiate, bring more cash, or dispute the valuation.
The Closing Disclosure
At least three business days before closing, you'll receive a Closing Disclosure detailing your final loan terms and costs. Review it carefully against your Loan Estimate and ask about any differences.
Closing Day
You'll sign the final paperwork, pay your down payment and closing costs, and the loan funds. Once recorded, the home is yours. Bring a valid ID and certified funds or confirm wire instructions directly with a trusted contact to avoid fraud.