Understanding the Loan Process

• Before applying, assess your financial situation. This includes checking your credit score, calculating your debt-to-income ratio, and determining how much you can afford for a down payment.

• Gather necessary documents such as tax returns, pay stubs, bank statements, and identification.

See the documents page for additional information.

• Apply for a mortgage pre-approval to understand how much you can borrow. This involves submitting financial information to a lender who will assess your creditworthiness.

• A pre-approval letter can make you more attractive to sellers, as it shows you're a serious and qualified buyer.

• With a pre-approval in hand, start house hunting within your budget. Work with a real estate agent to find properties that meet your needs and preferences.

• Once you find a home, make an offer. Negotiations may follow until both parties agree on a sale price.

• The lender will process your application, verifying your financial information and assessing the property's value through an appraisal.

• The underwriter will review all information to ensure compliance with lending guidelines and assess the risk of lending to you.

• If the loan is approved, you'll receive a commitment letter from the lender. Review and accept the terms.

• A closing date is set where you'll sign various legal documents, including the mortgage and promissory note. You'll also pay closing costs and the down payment.

• Once all paperwork is signed and funds are disbursed, the property is officially yours.

• After closing, you'll begin making regular mortgage payments, typically including principal, interest, taxes, and insurance.

• Keep important documents in a safe place and maintain good financial habits to ensure timely payment and avoid default.