PRE-APPROVAL - Unless you’re paying cash, buying your dream home requires successfully securing a loan, and that process starts with pre-approval. Your lender will ask you some basic financial questions, then will of a credit check to determine how much money you’re qualified to finance. Once assessed, you’ll be pre-approved for a loan of a specific dollar amount. We’ll use that amount as a starting point to help you find properties that meet your needs and fit your budget.

LOAN APPLICATION - Pre-approval is just a starting point. Once you find the right home and your offer is accepted, it’s time to formally apply for a mortgage loan through your lender. Get ready for paperwork, paperwork, and more paperwork!

DOCUMENTATION REQUESTED - Your lender will ask for verification of your full financial picture. This includes your employment history, debt, assets, etc. They’ll also ask for supporting documentation for all of the above and will hire an appraiser to determine the fair market value of the home you’re purchasing. Making sure your home is listed for a fair price is an important step for the lender managing the loan.

LOAN SUBMISSION - Once all the necessary documentation has been collected, your loan processor will put your loan package together and submit it to the underwriter for final approval.

LOAN APPROVAL - The underwriter will determine whether your loan is fully approved, conditionally approved, or denied. If your loan is conditionally approved, the underwriter may request additional documentation or explanations for things like credit history blemishes. Once any conditions are reconciled, the underwriter will approve your loan.

DOCUMENTS DRAWN - After approval, the loan documents, including the note and deed of trust, are created, completed, and sent to the title company. At this point, you’ll be asked to come into the closing. This is when you’ll sign the final documents and will pay the required closing costs.

FUNDING - The lender receives all the signed loan documents and reviews the package. If all the forms are prepared correctly, funds are wire transferred to the title company.

RECORDING - After funds are received, your escrow officer will authorize the county record to record your signed documents. The lender will then prepare a final settlement statement, disburse proceeds to the seller, and pay off the existing encumbrances and other obligations.