Complete the application Your lender will assist you to fill out a loan application. (The next screen provides more information.)
Get preapprovedAfter reviewing your completed loan application, the lender can give you a preapproval letter, a written letter that confirms the price of home you can purchase.
ProcessingYour home mortgage specialist collects the necessary financial documents to process your loan. The property is appraised to determine its fair market value.
Receiving approvalThe lender will review your application and financial information to make their lending decision. If your application is declined, they may recommend steps you can take in order to obtain financing.
Pre-closingIn this phase, sometimes referred to as “loan settlement,” your home mortgage consultant will work with you to secure any required title insurance and real estate documents to protect against other parties claiming ownership of the property.
Closing dateThe day and time when all final mortgage documents are signed and all necessary payments are transferred to complete the purchase of a house. Also known as the settlement date.
Loan servicingThe steps taken to maintain a loan from the time it’s closed until it’s paid off, for example billing the borrower, collecting payments, and making contract changes. It’s not uncommon to have loan servicing transferred between many companies during the life of a loan.
Note: Title insurance is a policy protecting a homebuyer and/or lender against loss due to an error or dispute related to the title, the document that proves property ownership.