Initiating a new loan is known as the process of loan origination. It involves the mortgage loan originator obtaining financial and personal information relating to the potential borrower to determine the amount and type of loan would be most suitable for the transaction. A loan application is prepared by the mortgage loan originator so that as the loan goes through the loan processing or underwriting process, the underwriter will have the information on the borrower, property and entire loan transaction in order to make a decision as to whether the loan will be approved.

When taking any loan application, there are certain pieces of information that will be required.

For ALL loans, you will need:

• the Social Security Number for all borrowers and a copy of the Social Security Cards.
• the most recent, original Leave and Earnings Statement (LES) or paystub(s) covering a 30-day period, showing the borrower's name and current year-to-date (YDT) earnings.
• W-2s from the past two years, as these will be used to double check income and addresses.
• if the borrower is self-employed (with greater than 25% ownership) or commissioned, the two most recent years' individual Federal Tax Returns and/or Corporate Tax Returns. The borrower's original signature must be on the returns. All lenders will utilize a Request for Transcript of Tax Return (IRS Form 4506-T), so it's best to collect all returns up front.
• a copy of current lease(s) on any rental property, although leases may not be used in all cases, and a copy of Schedule E from the most recent two years' Federal Tax returns.
• for pension or Social Security income, a copy of the Awards Letter and evidence of receipt of the income for the past two months (e.g., a bank statement showing direct deposit or remittance stub).
• for note income, a copy of the Note Receivable and evidence of receipt for the past two years (e.g., an income tax return showing interest Income from the Note or bank statements showing deposits or cancelled checks).
• original bank statements for all accounts covering the most recent two-month period.
• a list of all debts, including account numbers, balances, and minimum monthly payment amounts.
• addresses for the past two years. If the borrower lives in rental housing, the borrower must provide the name, address, and phone number of the landlord.
• a Divorce Decree or Separation Agreement, if applicable.
• a check payable to the mortgage company to cover the cost of the credit report.
• picture ID such as a state-issued driver's license.

For Department of Veterans Affairs VA home loans, you will need:

• a Certificate of Eligibility (COE).
• a Statement of Service for active duty military, which must be dated within the past 30 days, or a Certificate of Release or Discharge from Active Duty (Form DD214) for discharged military.
• the amount of child care expense paid for the care of minor children.
• current orders for active duty military.

For real estate purchase loans, you will need:

• a fully-ratified real estate sales contract, including any addenda, and a copy of earnest money check. The earnest money check must be cashed and cleared by closing.
• the names and telephone numbers of all real estate agents involved in the transaction.

For refinance loans, you will need:

• a copy of the deed, note, or mortgage, and the Closing Disclosure (or the older HUD-1) from the purchase of the property.
• a copy of the existing survey.
• a payment coupon from the existing mortgage with an account number and customer service number.
• a copy of the current Hazard Insurance policy, and the name and phone number of the borrower's insurance agent.