If you’ve ever felt confused about how a mortgage loan actually comes together, you’re not alone.
Buying a home is probably the biggest purchase you’ll ever make, and the path from browsing online listings to holding those shiny new keys can feel like a maze.
Fortunately, you can break the mortgage loan process into clear, manageable steps.
Once you understand each phase, you’ll be in a stronger position to navigate every twist and turn to homeownership.
While the details can vary slightly from lender to lender, there are typically six main stages of getting a mortgage.
Before you start touring open houses or scrolling through home listings until midnight, getting pre-approved for a loan is a good idea.
Pre-approval gives you a ballpark figure for how much you can borrow and demonstrates to sellers that you’re serious.
Your lender will look at your credit score, income, employment history, and other key pieces of info to estimate a loan amount.
Armed with that pre-approval letter, you can now hunt for homes within your budget range. This step is both exciting and exhausting.
You’ll likely work with a real estate agent, attend showings, compare neighborhoods, and narrow down which house feels like “the one.”
Once you find a home you want to buy and have your offer accepted, you’ll fill out a formal mortgage application.
This is where you provide more detailed financial records—like tax returns, pay stubs, and bank statements—to finalize the exact terms of the loan.
At this point, the lender’s processing team takes over. They’ll verify all the documentation you’ve provided, order a home appraisal, and double-check that all the numbers are correct. They’ll contact you for clarification or additional paperwork if anything is missing.
Underwriters are the “behind-the-scenes” decision-makers. They’ll analyze every detail of your application, credit history, debt-to-income ratio, and the home’s projected value to ensure that your application meets the lender’s guidelines.
If it passes muster, your mortgage is conditionally approved (or sometimes approved outright). You may have to address any issues or provide more documentation if it doesn’t.
This is the final step, where you’ll sign the official paperwork. Closing typically happens at a title company or attorney’s office.
Once you’ve reviewed and signed all the forms—and paid your share of the costs—the home becomes yours. Congratulations, you’re now a homeowner!
Kick off your mortgage journey with these simple steps.
It’s easy to assume that the friendly loan officer you talk to on the phone makes the final call, but that’s not quite the case.
While your loan officer or mortgage broker is your main point of contact, the underwriter approves or denies your loan.
Think of underwriters as the behind-the-scenes experts who:
Underwriters sometimes issue conditional approval, meaning they need extra documents or clarifications before giving you the green light.
In other cases, they might lower the approved amount if something in your application raises concern—like high debts or an unstable job history.
If you meet all conditions, the underwriter eventually signs off on the loan, and you’re one step closer to closing.
Closing on a home isn’t usually an overnight affair.
The entire timeline—from the moment you find a house you love and have your offer accepted to the day you sign the final documents—typically spans anywhere from 30 to 60 days.
Here’s a rough breakdown of the main time-consuming parts.
Your lender will order an appraisal to confirm the home’s fair market value. You’ll also want a home inspection to check for structural issues or hidden problems.
Scheduling and completing these can take a couple of weeks.
The lender’s team needs time to review your documents, verify income and assets, and ensure everything matches up. Expect some back-and-forth during this stage if they need more info. This length of time will vary depending on your lender.
Once the processing is complete, your file goes to the underwriter. The length of this step can vary, depending on how complex your financial situation is and whether the underwriter needs additional documents.
After the underwriter approves your loan, the lender will prepare closing paperwork. You’ll need to schedule a closing appointment, and you might also do a final walk-through of the property to confirm any repairs or changes have been completed.
If any hiccups arise, such as appraisal discrepancies, title issues, or problems verifying income, those can add extra days or weeks.
That’s why staying responsive to your lender’s requests can speed things along.
Closing costs are the fees and expenses you’ll pay to finalize your home purchase.
They usually range from 2% to 5% of the home’s sale price, which can shift depending on your location and lender.
Here are some common charges you might see:
Your lender will provide a Loan Estimate after you officially apply, which lists approximate closing costs. Then, before closing, you’ll receive a Closing Disclosure that lays out your final costs and fees in detail.
Carefully compare your Closing Disclosure to the Loan Estimate you received earlier—if you spot major changes or new fees, ask your lender to explain them before you sign on the dotted line.
The mortgage process can seem daunting, but you can navigate it successfully by understanding the key steps and working with qualified professionals.
From getting pre-approved for a loan to closing on your new home, careful planning and preparation are essential.
By taking the time to understand your options and make informed decisions, you can increase your chances of securing a mortgage that fits your financial needs and achieve your dream of homeownership.
Start here to get matched with the right lender for your mortgage needs
Our advise is based on experience in the mortgage industry and we are dedicated to helping you achieve your goal of owning a home. We may receive compensation from partner banks when you view mortgage rates listed on our website.
