Qualifying for a home involves enduring the mortgage loan process. This process outlines the steps needed to ensure proper assessment of the property, credit worthiness, and financial stability.

Pre-Purchase
The real estate agent and the buyer begin the search for a suitable home. The buyer contacts lender request pre-approval. The buyer also negotiates an offer to purchase or a sales contract. If the offer or sales contract is accepted by the seller, the buyer moves on to the application process.

The Application
The buyer (now called the "borrower") completes a mortgage loan application with their mortgage with their lender. The borrower must supply:

• employers' names and addresses for the past two years
• financial institutions' names, addresses and account numbers for asset verification and all debts (installment and revolving)
• residency addresses for the past two years an offer to purchase 

Opening The File
The lender orders a property appraisal and a credit report, mails out Verifications of Employment and Deposit (VOEs and VODs), and then waits for their return. The VOE: Employers are asked to verify for each borrower the last two years of employment history and gross income, and state the probability of continued employment. The VOD: Financial institutions are asked to verify the existence of each borrower's funds. The borrower must have at least 3%-5% of his or her own funds for the down payment, sufficient funds to close the loan and 2 months' reserves of principal, interest, taxes and insurance (PITI). All funds must have been on deposit for 60-90 days.

Processing 
The lender reviews the credit report and verifies the borrower's debt and payment histories as VOEs and VODs are returned. If there are any late payments, collections or judgments shown on the credit report, a written explanation is required from the borrower. The lender also reviews the appraisal and checks to see if there are any property issues that may require additional comment by the appraiser. Any required repairs on the property are reported by the real estate agent and borrower/seller.

Underwriting
The underwriter reviews the loan package for approval. If more information is needed to make a decision, the loan is put into suspense and information is requested from the borrower. 

Closing 
The closing represents the final step in the mortgage application process. An attorney will do a title search on the property, prepare the legal documents necessary for the closing of the loan, and provide you and/or your attorney with the exact closing costs. At the closing, the borrower obtains his or her loan proceeds and presents a certified check to cover the balance of the down payment and the closing costs. The loan closes. The borrower moves into the new home.