The Loan Process

Pre-Approval & Pre-Qualification
To get a sense of how much you may be able to borrow, it is important to get pre-qualified, which is different than getting pre-approved. Pre-qualification gives you an estimate of how much you may be able to borrow. Pre-approval, on the other hand, indicates that you have been approved for a set loan amount prior to property selection.

What Happens After You Apply?
The time it takes to complete the loan process varies for each application. Here is a list of the stages required to process a mortgage. Remember that completing your application accurately and fully will help speed the process.

Processing
After you apply, a loan processor will collect documents and verification to support your request for a loan. The time in processing will vary depending on the type of loan and how quickly the processor receives the necessary documents. Much of processing involves help from other sources, such as:

• Appraisal – An appraiser will judge the value of the property, generally based on the recent sales in your market.
• Credit Verification – A credit report through a credit reporting agency will be requested to verify your outstanding debts and payment history.
• Income Verification – In addition to the documents from you, your employer will most likely be asked to verify your income.
• Asset Verification – To confirm that you have sufficient funds required to close on your mortgage.
• Previous Housing Verification – The history of your rent or mortgage payments from your lender or landlord will be reviewed.

Underwriting
Once the application is processed, your processor will submit the complete package for review. The Underwriter compares your loan request to the guidelines of the lender or its investors for the type of loan. Then the underwriter issues a decision on your application based on established investor and lender guidelines.

Closing
Closing occurs when you sign the papers for your mortgage loan, and when the property is transferred, if your loan is for a home purchase. Most closings will take place at your attorney’s office.

What You'll Need For The Application
Please download this step by step form to answer any questions you may have.