After that time period, you will be subject to market rate conditions at the time you are ready to finalize your purchase, a day known as closing or "settlement."

Because we are currently near the bottom of a 40-year interest rate cycle, it is unlikely that rates will get any lower than they are right now. So today's buyer is well advised to prepare for the day of loan application, in order to make sure that the process goes as quickly as possible from the beginning.

The lender will require that you gather information from four major areas of your financial life:

* YOUR INCOME

The lender needs to satisfy themselves that you have the ongoing capacity to afford the monthly payments, so they will want documentation of your regular sources of income.

These would include tax returns for at least the past two years, and copies of W2 forms from your employers. Also, recent pay stubs will verify that you are still employed and that your income is steady. Don't forget to include guaranteed annual bonuses or recent raises in your information.

If you have self-employment income, your tax return becomes your proof of payment. But you will also be asked for a current "profit & loss" statement as well as a balance sheet for the business.

Likewise, if you have additional income from sources such as commissions or income from interest or investments, you will need documentation of these as well. And don't let the lender fail to consider ongoing income from sources like social security or income from hobby activities.

* YOUR DEBTS

After documenting all your sources of income, the lender will want to know about all your continuing monthly debt repayment obligations, also known as your "debt load."

Begin by gathering all your credit card statements for the past three months, then include information about student loans, installment loans, auto loans, and even contingent obligations such as cosigned credit cards or notes.  Also, if you have leased appliances or furniture, you will need to let your lender know.

For each of these obligations, the lender will need statements including account number and creditor contact information. Also, if you are required to pay alimony or child support, the lender will need to verify the amount of the monthly obligation.

And some loan programs do not consider any monthly obligation with less than six months remaining on the payment schedule, so tell your loan officer if any debt is nearly satisfied.

Finally, the lender must verify your current rental history or your present mortgage payment history, so gather that information as well. A mortgage statement or a copy of your rental agreement is typically required.

* YOUR ASSETS

Mortgage lenders even want to know about all the financial assets you have tucked away, and they will need documentation of each, so plan on providing at least three monthly statements for all your bank and savings accounts, your brokerage accounts, your retirement accounts, and any substantial investments you may have.

For example, if you inherited a one-half interest in the family farm in the mountains, then the lender will want information about that property and what is owed against it for your financial statement. Likewise, if you owned a valuable collection of silver coins or had an interest in the family business, that would count as an asset, and the lender would want to know all about it.

* YOUR PURCHASE

Before the loan application can proceed, the lender needs to know that you have a house currently under a valid contract, and will need a signed copy of the purchase and sale agreement.

Because most sellers of residential real estate require a cash earnest money deposit, and because you plan to use that earnest money as part of the purchase price of the house, the lender will need a copy of the cancelled check proving that what you paid was from personal funds, not a loan or a gift.

Likewise, the lender will ask about the source of funds you plan to tap for the down payment at the settlement table. Banks are very touchy about the source of the down payment, because fraudulent seller kickbacks can be disguised as previously received large down payments.

In addition, the lender wants to make sure you didn't borrow any portion of your downpayment, which might increase your monthly debt load and change your future financial picture.  

Know that some loan programs welcome family gifts for down payments while others prohibit them. Allowable gifts will require a letter from the giver stating that the sum is a gift "with no expectation of repayment."

Different lenders and different loan programs will require different documentation, so always ask your lender if there is anything else they need.

Having copies of all these documents in your possession will greatly accelerate your loan application process, and make it much more likely that you can close within the thirty days allotted.