Your Ultimate Guide to the Mortgage Process

This first step is crucial and sets the stage for your home buying experience. You and your loan officer will discuss your short and long term financial goals so that a customized loan strategy can be developed.

The goal of completing an application is to gather as much information as possible so your loan officer can determine all the available loan programs.

Here’s where you get an idea of how much you can borrow. Prequalification is a quick assessment based on your application and credit. Preapproval is more serious – your loan officer will check your finances thoroughly. It’s better to aim for preapproval, so sellers take you seriously.

Now the fun part – house hunting! Get a real estate agent to help you find your dream home. Once you find it, make an offer that fits your budget. Enlist the services of a knowledgeable real estate agent to assist you in finding properties that match your preferences and budget. Check out my Preferred Pros section for my recommendations on real estate professionals that I’ve worked with and would recommend to my clients.

You found the perfect home? Great! Now it’s time for your loan officer to submit your loan to underwriting. Get ready to fill out some paperwork and provide additional financial documents. This is when the lender verifies everything.

Practical Tip: Stay on top of the paperwork and respond quickly to lender requests.

Underwriting is when the lender goes over all your info and decides if you’re a good risk. It might take some time, so be patient. Once you’re approved, you’ll get an official letter with your loan terms. Also known as a Clear to Close.

Practical Tip: Don’t do anything drastic like changing jobs during this stage; it could mess things up.

You’re almost there! The closing is when you officially become a homeowner. You’ll sign lots of papers, pay the closing costs and your down payment.

Practical Tip: Review all the documents before signing to make sure you understand everything.