With long-term home loan interest rates at such low levels, lenders are protecting themselves from the risk of possible rate hikes by offering "rate locks" of no more than 30 days.

When you call a lender and say, "I want a loan," the lender will quote you a rate good for only 30 days. After that, 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.

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:

YOUR INCOME

The lender needs to be assured that you have the ongoing capacity to afford the monthly payments, so you will need 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.

If you have self-employment income, your tax return becomes your proof of payment. But you will also be asked for a current "profit and 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 to document them.

YOUR DEBTS

The lender will want to know about continuing monthly debt obligations, known as your debt load. Gather credit card statements for the past three months and information about student loans, installment loans, auto loans, obligations such as co-signed credit cards or notes, and leased appliances or furniture.

If you are required to pay alimony or child support, the lender will need to verify the amount of the monthly obligation. Some loan programs do not take into account debt with less than six months remaining to pay, 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. A mortgage statement or a copy of your rental agreement is typically required.

YOUR ASSETS

Mortgage lenders want to know about all the financial assets you have tucked away, 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 half-interest in the family farm in the mountains, then the lender will want information about that property and what is owed against 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 canceled 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. 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 down payment, which might increase your monthly debt load. Some loan programs allow family gifts for down payments, and others prohibit them. Allowable gifts will require a letter from the giver stating that the sum is a gift "with no expectation of repayment." Having copies of all these documents in your possession will greatly accelerate your loan application process, and make it much more likely you can close within the 30 days allotted.

Find previous articles by John Adams and more home buying advice on the ajchomefinder mortgage center.