n attempting to approve home buyers for the type and amount of mortgage they want, lenders basically look at two key factors: the borrower's ability and willingness to repay the loan. Ability to repay the mortgage is verified by your current employment and total income. Generally speaking, lenders prefer for you to have been employed at the same place for at least two years, or at least be in the same line of work for a few years. The borrower's willingness to repay is determined by examining how the property will be used. For instance, will you be living there or just renting it out? Willingness is also closely related to how you have fulfilled previous financial commitments, thus the emphasis on the credit report or rent and utility bills. It is important to remember that there are no rules carved in stone. Each applicant is handled on a case-by-case basis. So even if you come up a little short in one area, perhaps one of your stronger points will make up for the weak one. Everyone involved in real estate is in the business of selling homes, in one way or another. Therefore, if the loan makes sense, lenders and insurers will do their best to see that you qualify. By its very nature, mortgage insurance is an aid to affordability, because it allows families to purchase homes with less cash on hand. The industry plays a central role in helping low- and moderate-income families become homeowners. I've applied for a mortgage. What else do I need to do before I move into my new home? Contact a settlement company/closing attorney to do a title search and handle the closing. Line up your homeowners insurance and be prepared to pay the annual premium at closing. What documents will I need to give the lender before closing a loan? Fully ratified and executed sales contract on purchase loansA termite report for the house Homeowners insurance policy properly listing the lender in the Mortgagee Clause Any outstanding items requested by the lender. What's included in closing costs Closing costs can be divided into three categories: Lender fees (points, appraisal, credit report, underwriting, settlement and tax service fee) Prepaids (interim interest, real estate taxes and escrow, insurance premiums and escrow) Settlement costs (title insurance, settlement/attorney fees, city/county/state taxes, recordation and messenger fees) Help! I have to close quickly. How can I speed up the loan approval process? Give the lender your last two years complete tax returns with all attachments and accompanying W2s; your last three pay stubs; your last 3 bank statements; name, address and account numbers for all debts; copy of car title if car is less than 5 years old; complete copy of executed contract for a purchase transaction.