Congratulations! I am going through this too, and it hasn't been a headache until a few days ago. First, they asked me for my paystubs, they verified employment with my employer, bank statements and tax returns. (I only had one because I had a two-year gap).
The only thing I can really warn you about is, do NOT do anything on your credit. Don't apply for a loan, don't use your credit cards if you're not going to pay them off to the exact balance you were when they ran your credit. And if you have anything in dispute status, they will make you remove the dispute comments. Removing dispute comments for me, caused my credit score to tank, and now my medium score is not high enough for this particular bank. It is below the 620, even though FHA is 580, this particular bank has overlays. So here I am a few weeks before closing, and I need 15 points for my credit score for the final approval. They're doing something called a rapid rescore. My LO is confident this will work, but I am beyond nervous. I will know this week. If not, they will have to withdraw my loan, and go to another bank. Please make sure if there is a problem, you are allowed to withdraw prior to them denying, as a denial with FHA will make it impossible to get approved with another bank. I would ask this ASAP.
Although there are horror stories, I am sure they are few and far between, we always hear the bad stuff and not always the good. Just be diligent. Good luck to both of you!
You will also sign a lot of edocs. If you are too close with credit, I would suggest (under the advice of your LO too) that you pay down whatever accounts you have to allow some wiggle room for credit score drops. They have run my credit several times. . . causing my score to drop.
I can't say it was a particularly unstressful process, it really does just take patience and suffering through it.