The Mortgage Process in 5 Basic Steps

Buying a home involves a lot of moving parts. If you’re thinking about buying a home for the first time or you want to brush up on the process before buying your next home, this quick overview can show you what to expect before, during and after you buy.

1. Organize your finances & get preapproved

   Step one starts before you actually apply. Lay the groundwork for buying your home by:

   • Reviewing your credit history
   • Saving for a down payment
   • Deciding on your price range
   • Organizing paperwork (tax returns, statements, paystubs, etc.)

   
   When you’re ready, you’ll work with a lender to decide which type of mortgage loan is right for you and fill out an application to get preapproved. Once you’re preapproved, you can confidently shop for houses knowing you have the support of your lender.

2. Find your home & make an offer

   Work with your real estate agent to find your home. When you’re ready to make an offer, your agent will negotiate on your behalf and organize all the paperwork. Once you and the seller have agreed on the purchase terms, you’re ready for the next step.

3. Home loan processing & underwriting

   When your offer has been accepted, your lender will review and verify all the details related to your home loan. As your application is processed, you may need to provide additional documentation if more information is needed. Your lender will keep you updated as this step proceeds.

   The underwriter—part of the lending team—will evaluate the details to determine the risk of offering the mortgage to you. They make the final decision based on the mortgage amount, your credit history and your capacity for repayment.

   While your lender is doing their part, you’ll work with a licensed home inspector to determine whether the home is in good condition or has any issues that weren’t evident during the tour.

4. Closing on your home

   With processing and underwriting completed, it’s time to prepare for closing. You’ll complete a final walk-through, finalize paperwork, provide the down payment and pay any closing costs. Plan for this meeting to take 1–2 hours, depending on the complexity of the sale.

5. Moving in!

   The best part of the mortgage process. Once closing is complete, the keys are handed over and the property is yours. Head to your new home for a quick celebration walk-through.

Ready to buy? Get in touch with our local mortgage lending experts or get preapproved. 

Still researching? Explore our Mortgage Learning Center.