Mortgage Loan Process

1. Pre-Approval

What Happens:

  • You meet with a loan officer to review your financial profile (income, credit, assets, debts).
  • The lender issues a pre-approval letter stating how much you may qualify to borrow.
  • This letter strengthens your offer when shopping for a home.

Documents Needed:

  • Government-issued ID (driver’s license, passport)
  • Social Security number (for credit check)
  • Recent pay stubs (last 30 days)
  • W-2s (last 2 years) or 1099s if self-employed
  • Bank statements (last 1–2 months)
  • Tax returns (last 2 years, if requested/Self Employed)

2. Home Shopping & Offer

What Happens:

  • You work with a real estate agent to find a home.
  • Once you choose a property, you make an offer.
  • If accepted, you sign a purchase agreement and move forward with financing.

Documents Needed:

  • Purchase agreement (signed by buyer & seller)
  • Proof of earnest money deposit

3. Loan Application

What Happens:

  • Your loan officer finalizes your mortgage application.
  • Loan disclosures (Loan Estimate, intent to proceed) are provided.
  • You confirm details like loan type, interest rate, and estimated costs.

Documents Needed:

  • Updated income and asset documentation
  • Signed disclosures
  • Gift letters (if receiving funds from family)

4. Processing

What Happens:

  • Loan processor verifies documents, orders appraisal, and checks employment.
  • They ensure all paperwork is complete before submitting to underwriting.

Documents Needed:

  • Homeowners insurance information
  • Additional bank statements or updated pay stubs if requested
  • Explanations for any unusual deposits or credit items

5. Underwriting

What Happens:

  • Underwriter reviews your file for approval.
  • They confirm you meet guidelines for income, credit, assets, and property value.
  • Conditional approval is issued (with a checklist of final items needed).

Documents Needed (if requested):

  • Letters of explanation (e.g., credit inquiries, employment gaps)
  • Verification of assets (retirement accounts, investments)
  • Additional documentation per lender’s conditions

6. Closing Disclosure & Final Approval

What Happens:

  • You receive a Closing Disclosure (CD) at least 3 business days before closing, detailing loan terms and costs.
  • The lender completes final verification (employment check, credit pull).
  • Clear-to-Close (CTC) is issued.

Documents Needed:

  • Government-issued ID
  • Wire instructions or certified check for closing funds

7. Closing

What Happens:

  • You sign the final loan documents with a notary or at the title office.
  • Funds are transferred, and the deed is recorded.
  • You get the keys to your new home! 

Documents Signed at Closing:

  • Promissory Note (your promise to repay)
  • Mortgage/Deed of Trust (secures the loan to the property)
  • Final Closing Disclosure
  • Other title and legal documents