Before you go shopping for a home, get pre-qualified! This is when the lender gathers information about your income and debts, and makes a financial determination about how much of a home you will be able to afford.
2. Loan Application
Once you have found your dream home or if you are planning to refinance, the application process will begin. You will complete a mortgage loan application which would require certain documentation that your lender would ask for.
3. Processing of Your Loan Application
Your loan will be fully evaluated and processed by a loan processor to check if there are any unacceptable late payments, collections, judgments, etc. After that, the loan processor will submit the entire application package to a lender so that the file will be underwritten.
The underwriter is responsible for checking if the file meets the lender’s criteria. If the loan is approved by the underwriter, a conditional commitment will be issued. Once all conditions have been satisfied, a closing can be scheduled.
The closing is when the lender funds the loan. Congrats you have arrived at the finish line!