Step 12: Provide documents to your loan officer

Be patient and expect that you’ll have to submit many, many documents throughout the course of getting a loan, including up until closing potentially. Different documents will be required by different lenders depending upon the investor funding the loan, the underwriter, and the loan type chosen.

Among the commonly needed documents though are W-2’s (or 1099’s & profit/loss statements for self-employed people) for at least several months, tax returns, several months of bank statements, list of assets which includes checking accounts, savings accounts, stocks, and IRAs, plus a list of your debts like car loans, student loans, credit cards, etc. A good rule of thumb is to gather all the requested documents and send them in together and complete. For bank statements send in each page, even if it’s blank.

Most lenders allow a Buyer to “lock” in their interest rate within 30-60 days from the closing date at no cost. This lock simply guarantees that moment’s current interest rate regardless of whether it goes up or down. Locking the interest rate is certainly the safer option as you know exactly what you’re getting. If you choose to float then the interest could rise, stay the same, or go down. Normally there won’t be huge swings in interest rates over a short time period so the marginal decrease that could happen is seen as not worth the risk by most Buyers. It’s absolutely a choice that only the Buyer can make but certainly consult your loan officer for their advice. No one can predict the future though.

In some cases a lender can lock an interest rate for a longer duration but they normally charge a pretty sizable fee as the lender is incurring more risk if the rates do rise significantly.

Next: Read the title commitment