Top of Page

Mortgage Loan Process

Experienced Staff. Exceptional Service

Photo of staircase with text that says Steps in the Mortgage Loan Process

  1. Pre-qualification – Occurs before the loan process actually begins, and is usually the first step after initial contact with a realtor is made. In a pre-qualification, your Lender gathers information about income and debts and makes a financial determination about how much you may be able to afford. A Pre-Approval Letter is provided.
     
  2. Shopping for the Home – Submit an offer. Once the contract is approved, a potential closing date is determined. A home inspection appointment is made.
     
  3. Loan Application – The Loan Officer sets an appointment to begin the loan application process. The Loan Officer collects the financial documents needed for loan approval (pay stubs, bank statements, tax returns, W-2 forms, identification, divorce decrees, etc.). The Loan Officer will discuss interest rates and lock options with you. Click here to see a list of items needed during the loan process.
     
  4. The Loan Estimate – Review the Loan Estimate carefully. Check to see that everything matches your expectations.
     
  5. Loan Processing – The Loan Processor reviews the completed loan application package and collects any additional information needed (such as employment, assets, homeowner’s insurance) to submit for underwriting approval. The title work and appraisal are ordered once the real estate contract has been accepted and executed by all parties, the loan is approved, and the option period is over.
     
  6. Final Loan Approval – A final loan approval is done once the appraisal is reviewed and all loan conditions are met. The closing date and time are confirmed.
     
  7. Pre-Closing Process – Once the loan is approved, the file is transferred to the Closing Department. During the pre-closing process, insurance information is confirmed, the rate lock is confirmed, receipt of the title work is confirmed, and the survey, termite, and final/repair inspections are reviewed.
     
  8. The Closing Disclosure – The Lender will provide you a Closing Disclosure. Compare it to your Loan Estimate. Check to see that everything matches your expectations. Acknowledge receipt from Loan Officer via esign or wet signature. Ask any questions you may have.
     
  9. Title Company – After borrower acknowledges the Closing Disclosure, the title company receives closing package and legal documents from the Lender’s closing department. The title company prepares any other forms needed to close the loan.
     
  10. Closing/Final Settlement – Sellers, buyers and realtors meet at the title company for the closing appointment. Once all the documents are signed, the title company scans funding requirements to the Lender for final review. The Lender then “funds” your loan.

A Pre-Qualification Form is not required to apply for a home loan. Additional information may be needed by the loan officer or loan processor during the loan process.