Many lenders will allow you to complete your mortgage application online, and some only accept online applications. If you're one of the roughly 10% of borrowers who prefer to apply the old-fashioned way, consider asking lenders about their process before beginning the application. At Citi, our Home Loan Officers will work with you in whatever way you’re comfortable applying.

When you’re ready to get started, you can expect to work through the following steps.

1. Gather your important documents

The mortgage application process is filled with paperwork, paperwork and—you guessed it—more paperwork. Gathering your financial documents ahead of time helps keep things running smoothly.

Before you contact a lender, consider tracking down the following documents:

• Pay stubs from the last 30 days
• Last 2 years of W-2s
• Tax returns from the past 2 years and more documents regarding other sources of income, if applicable
• Bank statements from the past few months
• Asset statements, like retirement accounts and other investments
• Address and financials on any additional properties you own
• Information on monthly expenses, like rent or utility bills

You may choose to keep these documents digitally or in a physical folder—just make sure they’re stored securely. Options like a password-protected drive, an encrypted folder or secure cloud storage could help shield your sensitive information from identity thieves.

When you apply with Citi, you can sign in with your financial institutions and Citi will pull the necessary information from your accounts, giving you more time to focus on your house hunt.

2. Get pre-approved

You might be familiar with the terms prequalification and pre-approval. Prequalification is a useful first step that offers a general idea of how much you may be able to borrow. However, prequalification doesn’t carry as much weight for sellers as a pre-approval, because the lender doesn’t typically verify the information you provide during prequalification. Pre-approval also comes with a letter that indicates the loan amount you’re likely to qualify for, assuming your financial details don’t change during the homebuying process.

To get a pre-approval letter, you’ll need to provide your lender with detailed financial information. Remember that handy paperwork checklist? This is where it comes into play. The lender will also review your credit report and other details to determine how much they’re willing to lend you. Try to get pre-approved right before you start house hunting. Pre-approvals are typically good for 60 to 90 days, so be sure time is on your side to make the most of your pre-approval.

Another tip: Keep your financial situation stable while shopping for a home. Avoid making big purchases like a car or opening or closing credit accounts, as these can temporarily affect your mortgage eligibility.

3. Fill out a mortgage application

Once you’ve made an offer on a home, it’s time to complete the mortgage application online or in person at your lender’s office. Remember those financial details you filed away? Keep them handy! You’ll need to provide this information on your application, along with your home purchase agreement. A home purchase agreement is a contract that lists the terms of your purchase.

The agreement outlines important information your lender may need to know, including:

• The address
• Size and type of property (i.e. single-family home, condo, townhouse, etc.)
• Purchase price
• Estimated closing date
• Contact information for your real estate agent
• Closing costs

4. Review your loan estimate

After you submit your loan application, the lender will give you a loan estimate. This document breaks down key information about your loan, such as the loan type, monthly payments, the interest rate and estimated closing costs including title insurance and appraisal fees. The loan estimate should also include all the nitty-gritty estimated costs for things like homeowners insurance, mortgage insurance (if required) and property taxes. Look the details over carefully to make sure everything is accurate and makes sense. If anything seems off or unclear, reach out to your lender—they’re there to help.

5. Lock in your loan

The lender will ask whether you want to lock the quoted interest rate, and if so, for how long. Remember interest rates can change daily. If you choose not to lock your interest rate, it will move with the market, either up or down. If you choose to lock your interest rate, you’ll want to select a lock period that extends through the date you expect to close with the seller.

6. Loan processing begins

Once you’ve handed in your loan application and let the lender know you’re ready to move forward, the loan processor steps in. Their main task is to double-check all the details you’ve given in your application against the financial documents you’ve provided like your bank statements, credit card statements and pay stubs. They also handle ordering the appraisal and coordinating other necessary services to wrap up the loan, like bringing in a settlement agent to close the deal.

Since all this takes a bit of time, your processor might ask you to provide updated documents if the ones you provided earlier in the process are over 30 days old. The loan process goes something like this:

• Verifying your income: The lender will contact your employer to confirm your employment and income.
• Appraising the property: An independent appraiser will schedule an appointment to assess the home’s value.
• Reviewing your credit report: The lender will look at your credit report and may ask you to provide explanations for certain items.
• Confirming assets and debts: The lender will verify the assets and debts you reported on your application.

The underwriter makes a decision

The underwriter is responsible for reviewing your full loan application and deciding whether it meets the lender’s eligibility guidelines. They will assess your credit score, debt-to-income ratio, employment history and other factors to ensure you meet the lender’s eligibility criteria. If the underwriter hits a snag or needs more information, don’t be surprised if they ask you for additional documents. It’s all part of their goal to make sure every detail checks out. Once you provide the requested items, the underwriter will resume their review, moving your file toward a final decision. 

Get ready for closing

If the underwriter gives your loan the thumbs up, you'll get the green light that everything's ready to close. Three days before closing, the lender will let you know the final closing costs and share any related documentation. That way, you can have the funds ready. Then they’ll send over the money you’re borrowing to the settlement agent. After you and the seller sign all the necessary closing documents, the settlement agent will handle passing those funds to the seller. You’ll sign a few papers, and then—drumroll please—you’ll get the keys to your new home. Time to celebrate!

Applying for a mortgage isn’t just about filling out forms (even though there are plenty of those). It’s also about helping to ensure that you’re well prepared for the process. Here’s what you can do before getting started to help put yourself in a stronger position.  

Check your financial pulse

How’s your credit score doing? This little number is super important because it influences the interest rate you’ll get on your mortgage. If your score is looking a bit low, consider giving it a boost by clearing up any errors and paying down debts.

Explore different types of mortgages

Time to brush up on your loan lingo. There are plenty of mortgages to choose from, and understanding the differences between them can help you hone in on the perfect one for you. Here’s a quick rundown of some of the common home loan types:

• Conventional mortgages tend to be good for folks who have strong credit and can afford a larger down payment
• Federal Housing Administration (FHA) loans could be a good option for first-time home buyers or people with lower credit scores, thanks to a lower down payment requirement
• Veterans Affairs (VA) loans are ideal for veterans and active-duty military members who want a zero down payment option

Double down on your savings

While putting 20% down on a home purchase is common, don’t sweat it if you can’t reach that number. There are plenty of mortgage options out there that can work with smaller down payments. For example, some Citi home loan programs like the Citi HomeRun® mortgage may allow a down payment as low as 3% for some properties. Government-backed loans often allow for lower down payments as well, and have flexible qualification criteria.

No matter which type of loan you choose, building up your savings can help you cover moving costs, closing costs and any surprises that come up along the way.

Applying for a mortgage loan takes some time, but you’re already ahead of the game by learning how the process works. Stay organized, stay optimistic and don’t be afraid to ask questions along the way—lenders expect it. And remember, every document you upload and every form you complete is one step closer to opening the door to a place you can call your own.