Understanding the mortgage process from start to finish helps reduce stress and ensures a smooth transaction. Here is what to expect.
Step 1: Pre-Approval
Submit your financial documentation for review. Receive a pre-approval letter that shows sellers you are a qualified buyer. This typically takes 24-48 hours.
Step 2: House Hunting
With your pre-approval in hand, work with a real estate agent to find the right property. Your pre-approval letter specifies the maximum loan amount you can obtain.
Step 3: Contract and Application
Once you have an accepted contract, complete the full mortgage application. Provide all requested documentation promptly to keep the process on track.
Step 4: Processing and Underwriting
The lender reviews your application, verifies your income and assets, orders an appraisal, and the underwriter makes the final lending decision.
Step 5: Clear to Close
Once all conditions are satisfied, you receive a clear to close. Review your closing disclosure (at least 3 business days before closing) and schedule your closing appointment.
Step 6: Closing
Sign your loan documents, pay your down payment and closing costs, and receive your keys. The entire process typically takes 30-45 days from application to closing.