This is by far the most important step in the home buying process. Without a lenders approval to finance a home, there is no loan to purchase unless you plan to pay cash for a home. The lender will provide you with a good faith estimate of closing cost as well as the maximum amount of money that you can borrow. The lender will explain the different loan programs and which one will best suite your needs. The lender will require financial documentation from you in order to establish your credit worthiness. And finally the lender will discuss the amount of funds that you will need for closing.