When you first apply for a mortgage. your Mortgage Agent (or your Loan Officer) will fill out a Loan Application. Some of the documentation collected at this time will be pay-stubs, bank-statements, and W-2 forms.
After reviewing your file. the Loan Officer will discuss with
you which "Loan Product". or which "Type of Loan" is
best for you. (For example. an FHA or VA loan. OR maybe a Conventional Loan that requires 5-20% down) This
will ALL be dependent upon your income/debt ratio, your
credit score, and your credit history.
You should also receive a written "Good Faith Estimate" of
ALL of your closing expenses.
The Underwriting Process is the last phase. before FINAL
During this process. Your entire file is evaluated by an
Underwriter (sometimes it is a "group" of people. Or,
now they are EVEN doing "computer underwriting." Everything in your file will be VERIFIED. including your
employment. Most underwriters require an "Employment Verification"
Letter. This document is either Mailed or Faxed
to your Supervisor or to the Human Resource Department of
your job. (Depending on the Lender's Policies. it is ALSO
"possible" that your job WILL BE called. I would recommend letting your supervisor know that you are shopping for a mortgage. )
Depending on the results of this FINAL verification process.
Additional documents "may" be required. For example,
be prepared to provide your MOST recent pay-stub. And
"sometimes" the underwriter(s) will request additional years
of W-2 forms.
Once the underwriters are satisfied that EVERYTHING in
your file has be verified. and that your income/debt ratio
meet Lender guidelines. All Lender requirements must be documented; including (of course) an appriasal and proof of Homeowner's Insurance. Then your file will be given a "Clear-to-Close". meaning that your file is "officially" out of underwriting. and that a Closing Date can be set.
Hope that this was helpful. Best Wishes if you are currently