Application

• They will request an application from you. Fill out all paperwork completely, accurately and truthfully. If you are dishonest, you could get into trouble. With the advent of the computer, the lending institutions have means to check any employers you have placed on your list, as well as how long you worked for a company.
  
  Also read the instructions carefully and follow them. For as Farwestproperties.com suggests, the prospective lender may ask for paperwork, such as W-2 forms, a month of check stubs from work or benefits, as well as statements from your bank. Prepare to attach any or all of these forms to your application.
  
  

Credit Check

• The lender, in all likelihood, will pull a credit report on you. It does this to examine your credit score, as well as your debt-to-income ratio. If the credit score is too low, and your debt-to-income ratio is exceptionally high, the institution may reject you for the loan.
  
  

Appraisal and Approval

• In the case of a house, the lending institution will have an appraiser examine the property. According to the Streetdirectory website, the lender assures that if the house should fall into foreclosure that the house value will cover the amount you owe on your loan which is now in default.
  
  

Review

• According to Farwestproperties, a review will take place by a processor. He will evaluate your application, requesting additional paperwork if necessary. The website says that this process can take between four and six weeks.
  
  

Closing

• At closing, the bank has approved your loan. It will give you final paperwork to sign. It is essential that you don your reading glasses if necessary, as there may be fine print you must agree to. Also, at this stage, you must make sure you have all monies required to cover the closing costs, which are the standard part of the process.