1. Pre-Approval: Laying the Groundwork

Early in the house hunting process, it’s important to get pre-approved for a mortgage. This step helps you determine how much house you can afford and signals to sellers that you are a serious buyer. During pre-approval, a lender will review your financial information, including:

• Credit score: Qualifies you for better interest rates.

• Income & employment history: Assesses your ability to make monthly payments.

• Debt and liabilities: Helps determine how much additional debt you can comfortably manage.

• Down payment: Narrows your loan options.

Once pre-approved, you’ll receive a letter stating how much you can borrow, giving you a clear budget for your home search.

2. Loan Application & Processing: Securing Your Financing

After you find your dream home and make an offer, the next step is submitting a formal loan application. This is when loan processing begins, which includes:

• Verification of Financial Documents – Review official and latest financial documents.

• Home Appraisal – Ensures the property is worth the loan amount.

• Underwriting – A thorough review to confirm you meet all loan qualifications.

At this stage, it’s important to avoid major financial changes, such as opening new credit accounts or making large purchases, as they could impact your loan approval.

3. Closing: Finalizing Your Mortgage

Once your loan is approved, you’re ready for closing—the final step in the mortgage process. At closing, you’ll:

• Review & sign documents – Finalize mortgage agreement and loan details.

• Pay closing costs – Pay fees, including lender fees, title insurance, and prepaid taxes.

• Escrow signing – Sign documents and deposit funds with escrow agent.