• Ben Stiller
• Jan 06, 2022
• Mortgage Process
• Share
  • Facebook
  • Twitter
  • LinkedIn
  • Email

If you’re interested in buying a new home/your first home, or even an investment property, there are specific steps you need to take before the keys to the front door rest in your hands. Becoming a homeowner is exciting, but the process of getting your finances in order to purchase the property can be somewhat daunting if you’re unfamiliar with the ins and outs.

If you’re unsure where to begin with the mortgage process and find yourself thinking, “Jeez, what’s the right way to go about this? What do I need to buy a house!?” This blog is to help you prepare for what’s ahead; here’s a step-by-step breakdown of the significant components of the mortgage process and how you can approach each phase for a smooth approval/application/closing experience.

The Pre-Approval Process

A loan pre-approval is the first step to ensure that the rest of the home buying process goes smoothly. The mortgage pre-approval phase typically involves a three-bureau credit report, also known as tri-merge, which details your credit score and credit history from a third-party institution. A mortgage lender will closely review your financial history and determine which loan, if any, you qualify for. A pre-approval can also help you in your chances of successfully closing on a house. When a seller notices that you’ve been pre-approved, they’re more likely to have confidence in you as a buyer and hopefully choose you over other interested parties.

Making an Offer

Once you’ve researched the areas you'd like to live/invest in and visited a few properties in person, it's time to make an offer. Work with your real estate agent to make sure you follow all the necessary steps. Before buying any house, the would-be buyer and seller must meet some contingencies. These protect your finances and tell the seller that you’re committed to the home. Once both parties approve the deal, a purchase agreement is signed by the seller and buyer. Some common contingencies include:

A cleared home inspection

Final loan approval

An appraisal that reaches the loan amount

Applying for Your Loan

Before a loan application can transition through the underwriting process, you’ll need to acquire important documents and organize them for the mortgage lender to access at any time. Mortgage lenders may gather information over the phone and online. While cultivating all the required documents may feel like a lot, it won’t take you long to find them, as long as you keep them in a secure and accessible document organizer. Your loan officer will tell which documents need to be prioritized and which are less significant. An average loan requires the following documents:

Type of mortgage

Assets (i.e., bank accounts and investments)

Employment data (i.e., current employer and position title)

Income (i.e., W2s)

Property information

Debts

Financial difficulties (i.e., bankruptcies and foreclosures)

Keep an Eye on Your Finances

Once you submit your loan application, the waiting game begins. Many actions happen behind the scenes with your mortgage lender/bank, leading to an eventual appraisal. After the numbers are run many times, the bank finalizes the process and ensures your new home’s value matches the purchase price; this helps the lender and the buyer. Until then, pay attention to your finances and ensure you don’t take on new debt while the loan is processed.

Closing on Your House

After completing the entire mortgage process, you must meet with a closing agent. It’s here where you’ll sign all the final mortgage documents. Once this is finished, you can close on your new home!

The Mortgage Process - Keeping All the Records Straight

People from both parties (lenders and homebuyers) need quick, accessible, and secure access to documentation throughout the mortgage process.

proborrower exists for this reason. It is a one-stop online platform to manage all your mortgage documentation and share it with lenders and brokers of your choosing.

---