You've found the mortgage you want and you're ready for the next step - the loan application. The process costs anywhere from $100 to $500 and is usually non-refundable. Lenders levy the fee to cover the costs of running credit reports and filling out mortgage-insurance applications.

What to expect

• You will need raw material, and lots of it, for the application: income and balance-sheet figures and evidence, copies of past income-tax returns and the title to your car. Take the paperwork you gathered during the pre-qualifying process with you.

• Be prepared to provide the name and phone number of someone who can verify your financial information - most likely your employer's personnel office. If you have substantial non-salary income from investments, you'll be asked to substantiate this through an accountant, stockbroker, trust officer or similar source.

• Application forms are usually filled out during the interview with the help of a loan officer, but you could fill them out at home and return them.

• In addition to the application fee, you may be asked to pay a "loan origination fee" or "prepaid point" - typically 1 percent of the loan amount - when you apply, before approval is made.

• Find out what will happen to your origination fee if the lender decides not to approve your loan. Will the 1 percent origination fee be refunded? Get the answer in writing before you pay.

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This copyrighted information is provided courtesy of the Stewart Title Guaranty Company.