The Loan Process

From Application to Closing

Getting a mortgage involves several steps, but knowing what to expect can make the process much easier.

While every transaction is different, most mortgage loans move through the same general stages—from getting prequalified to receiving the keys to your new home or completing your refinance.

1. Get Prequalified

The process begins with a review of your financial situation and financing goals.

We'll typically discuss:

• Income and employment

• Credit history

• Monthly debts

• Available assets

• Down payment and funds for closing

• Property type and occupancy

• Estimated purchase price or loan amount

This helps us identify loan programs that may fit your situation and, for a home purchase, establish an estimated price range, plus clarify the loan contingency on the offer.

2. Complete Your Mortgage Application

Once you're ready to move forward, we'll complete the mortgage application and gather the documentation needed for your loan.

Depending on your situation, this may include income, employment, asset, credit, property, and other supporting documentation.

3. Loan Disclosures

You'll receive disclosures describing the proposed mortgage and estimated costs.

For most covered mortgage transactions, this includes a Loan Estimate (LE) showing important information such as:

• Loan amount

• Interest rate

• Estimated payment

• Estimated closing costs

• Estimated cash to close

• Other important loan terms

Don't worry if you have questions when you receive the disclosures—we'll go through the numbers together.

Remember — It's an Estimate

As the name suggests, the Loan Estimate contains estimated figures based on the information available at that stage of the loan process.

Some amounts may change as actual or updated information becomes available, including items such as property taxes, homeowners or flood insurance, title and settlement charges, prepaid interest, escrow requirements, credits, and other transaction-specific expenses.

As your loan moves toward closing, these figures are updated and reconciled using the available final information.

Before closing, you'll receive a Closing Disclosure (CD) showing the final or substantially finalized loan terms, payment information, closing costs, and cash-to-close figures.

Don't be concerned if some numbers change between your initial Loan Estimate and your final Closing Disclosure. We'll review the figures together so you understand what changed and why.

4. Loan Processing

Once your application and initial documentation are received, the loan moves into processing.

The processor helps organize the loan file and may:

• Review documents for completeness

• Verify income, employment, and assets

• Request updated or additional documentation

• Order or coordinate required third-party services

• Review title and property information

• Prepare the file for underwriting

It's normal to receive requests for additional or updated documents during this stage. Responding promptly can help keep your loan moving toward closing.

5. Appraisal & Property Review

For many mortgage loans, an appraisal is ordered to provide an independent opinion of the property's value.

Depending on the loan program and property, the lender may also review:

• Property condition

• Flood zone information

• Homeowners and flood insurance, when applicable

• Condominium or HOA information

• Title information

• Required inspections or repairs

• Other property-specific requirements

An appraisal is primarily for the lender's mortgage evaluation and is not the same as a home inspection. Buyers may still want an independent home inspection to better understand the property's condition.

6. Underwriting

Once the file is ready, it is submitted to an underwriter for review.

The underwriter evaluates the complete loan file to determine whether it meets the requirements of the applicable mortgage program.

The review may include:

• Credit history

• Income and employment

• Assets and funds to close

• Monthly obligations and DTI

• Property and appraisal

• Title

• Insurance

• Loan-to-value

• Required reserves

• Other program-specific requirements

What Does “Approved With Conditions” Mean?

It's very common for a mortgage to receive a conditional approval.

This means the underwriter has reviewed the loan but needs certain additional documents, explanations, verifications, or other items before issuing final approval.

A conditional approval does not necessarily mean there is a problem with your loan. Conditions are a normal part of the mortgage process.

Once the requested conditions are provided, the loan is returned to underwriting for review.

7. Final Approval — Clear to Close

Once the underwriting conditions have been reviewed and satisfied, the loan can move toward final approval, often referred to as Clear to Close.

Before closing, the lender may perform final verifications, which can include employment, credit, assets, insurance, or other information.

For this reason, continue to avoid major financial changes until after your loan has closed.

8. Review Your Closing Disclosure

Before closing, you'll receive a Closing Disclosure (CD) showing the final or substantially finalized details of your mortgage transaction.

The Closing Disclosure includes information such as:

• Final loan terms

• Interest rate

• Monthly payment

• Closing costs

• Prepaid expenses

• Escrow information

• Credits and adjustments

• Cash needed to close

For most covered mortgage transactions, the initial Closing Disclosure must be received at least three business days before consummation.

Compare It With Your Loan Estimate

Some figures may be different from your original Loan Estimate because estimated amounts have now been replaced or updated with more current information.

We'll review the final figures so you understand what you're paying, what you need for closing, and any changes from the earlier estimates.

9. Closing Day

At closing, you'll sign the final mortgage and other required documents.

For a home purchase, this is also when the real estate transaction is completed and ownership transfers according to the closing documents.

Depending on the transaction, you'll typically:

• Review and sign your closing documents

• Provide any required funds for closing using the approved method

• Complete final title and settlement requirements

• Receive copies of your documents

• Complete the transaction and, for a purchase, receive access to your new home according to the terms of the contract and closing

Always verify wiring instructions directly with the title or closing company using a trusted telephone number before sending funds. Never rely solely on emailed wiring instructions.

10. After Closing

Your mortgage journey doesn't end at the closing table.

You'll receive information about:

• Your mortgage servicer

• Your loan number

• Your first payment amount and due date

• How and where to make payments

• Your escrow account, when applicable

• Any future servicing transfer

Consider setting up automatic payments or recurring payment reminders once you've confirmed your mortgage servicer and payment instructions.

And remember: your first regular mortgage payment is commonly due on the first day of the second month following closing, although you should always follow the due date shown on your loan documents and servicing information.

From Application to Closing — I'm Here to Help

A mortgage involves a lot of moving parts, but you don't have to figure them out on your own.

I'll help you understand what's happening, what is needed next, and what to expect as your loan moves from application through closing.

GET PREQUALIFIED

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The mortgage process and timing can vary depending on the borrower, property, loan program, lender requirements, third-party services, and transaction.