• Paystub Keep copies of your last two paystubs. If you receive a monthly income you will need to start at least one month early or obtain a copy from your employer.

• W-2 or 1099 The lender will need a copy of your last two W-2 tax forms. If you can't find them you can obtain a copy from your employer or the IRS. If you are self-employed, you will need to provide the lender with copies of your form 1099 for the last two years and copies of your last two tax returns.

• Bank accounts You will need to provide the lender with copies of your last three monthly bank statements for all checking and savings accounts. You will need the account numbers and current balances on all of your accounts.

• Employer information You will need an address and phone number for the lender to obtain Verification of Employment forms. This will expedite verification of your place of employment. The address may be different than the address of your workplace. You will also need names and address of former employers for the lender.

• Assets If you have additional assets on your loan application, the lender will need to verify their value. For example, if you list stock or bonds in your account, the lender will need to have a statement from your brokerage showing the account, its balance and the number and type of shares you hold. Prepare a list of all your other assets, such as retirement accounts and insurance, and documents that will verify the value of these assets.

• Real estate The lender will need information about the value of real estate you own, as well as copies of any rental agreements.

• Personal property You will need to list any valuable personal property you own, such as cars, artwork, jewelry, collectibles, electronic equipment, and tools. Make a list and determine the value of these assets.

• Credit cards Make a list of all your credit cards, including the addresses, account numbers, and balances on these accounts.

• Liabilities Provide the lender with the names, address, account number, monthly payment and outstanding balance on each of your debts. These loans could be for real estate, cars, furniture, and education. You will need to provide the lender with documents showing your monthly payment and the balance of the loan.

Any additional items that you include on your application will need to be documented for the lender. This could include:

• Additional income from a part-time job

• Alimony or child support

• Divorce

• Bankruptcy

• Judgements

If you have all of this information ready for the lender it will accelerate the application process. You might even fill in the form before your appointment with the lender and fax your lender a copy. This way the lender can call you and let you know what additional information he or she will need.

When you meet with your lender or if you are doing the loan online make sure you have collected all the previous information so you can go over the information with the lender. You will need your checkbook or credit card to start processing the loan. Most lenders will charge for the credit report and a loan-processing fee when they start processing your loan. If you have purchased a home the lender will also collect an appraisal fee.

The federal Real Estate Settlement Procedures Act requires that the lender provide the borrower with the following information when applying for a loan or a mortgage:

• A closing cost statement, an itemized statement of the closing costs that you may incur. This is a "good-faith estimate" and must be given to you within three days after applying for a loan or a mortgage.

• The lender must give you a copy of the government publication "Settlement Costs: A HUD Guide." This is a booklet that describes the settlement process and helps the consumer to understand some of the terminology. It also helps the consumer with understanding his or her rights. The lender is required to give this booklet to the loan applicant within three business days after applying for a loan.

• Under truth-in-lending laws the lender must supply the applicant with a statement disclosing the Annual Percentage Rate (APR) of a loan. The APR is different than the note rate on loans. The APR contains the cost (closing costs) of the loan averaged out over the life of the loan. The APR is usually higher than the note rate of the loan. The lender must disclose the APR of a loan within three days after you apply for a loan.

Whether you review the loan application with your lender in person or online, be sure to complete the following:

• Review your credit report for mistakes or incorrect information.

• Sign several authorization forms that allow the lender to verify information on your application. These authorizations might include verification of deposits, employment and bank accounts.

• Receive explanations of the different types of loans that are available.

• Review the down payment and closing costs necessary to close the transaction using one of the different loan programs.

• Discuss with the lender when the interest becomes locked in. Is the rate determined at the time the loan is approved or is the rate locked in at the time of application? This discussion is critical, especially when interest rates are volatile. Make sure you understand how, when and for how long the rate is locked in. You also need to know what happens if interest rates go down.

The lender will process your application by reviewing all the documentation that you have supplied and verifying that the information on your application is correct. He or she will send out verifications to the bank and employer, and verify any other necessary information. Lenders will need to validate all the information that is on your application and in your credit report. Once the process is completed, the lender will start packaging your loan for presentation to an underwriter. The underwriter must see that the information on the credit report has been confirmed and that any unfavorable information has been explained or documented. The underwriter determines whether the loan will be approved. If the underwriter approves the loan, the lender will then put together the loan document "drawing the documents", that is necessary for you to receive your money. Sometimes the underwriter will approve a loan subject to certain conditions being met before final approval is given. In this case, the borrower and the lender will need to meet these conditions before the loan will receive final approval. If the underwriter does not like the information in your credit report or your application, he or she can deny the loan.

If your loan has been denied, you can require the lender to give you a written explanation of the denial. If you can correct the problem, the lender will probably make the loan. You should also submit your loan to another lenders. Different lenders and underwriters may have different guidelines for approving loans.