From Application to Keys — Step by Step
We’ve mapped the entire mortgage journey so you always know what comes next.
Pre-Qualification
Pre-qualification starts the loan process. Once a lender has gathered information about a borrower’s income and debts, a determination can be made as to how much the borrower can pay for a house. Since different loan programs can cause different valuations a borrower should get pre-qualified for each loan type the borrower may qualify for. In attempting to approve homebuyers for the type and amount of mortgage they want, mortgage companies look at two key factors: the borrower’s ability to repay the loan and the borrower’s willingness to repay the loan.
Mortgage Programs and Rates
To properly analyze a mortgage program, the borrower needs to think about how long he plans to keep the loan. If you plan to sell the house in a few years, an adjustable or balloon loan may make more sense. If you plan to keep the house for a longer period, a fixed loan may be more suitable. An experienced mortgage professional can evaluate a borrower’s situation and recommend the most suitable mortgage program.
The Application
The application is the next step of the loan process. With the aid of a mortgage professional, the borrower completes the application and provides all requested documentation. A loan application is not considered complete until you have given us at least: your name, your income, your Social Security number (and authorization to check your credit), the address of the home, an estimate of the home’s value, and the loan amount you want to borrow.
The Loan Estimate
A Loan Estimate is a three-page form that you receive after applying for a mortgage. It tells you important details about the loan you requested, including the estimated interest rate, monthly payment, and total closing costs. We deliver it within 3 days of your fully completed loan application. All lenders use the same standard form, making it easier to compare loans.
The Intent to Proceed
After you receive your Loan Estimate, it is up to you to decide whether to move forward. If you do intend to proceed, you must tell us in writing or by phone. All lenders are required to honor the terms of the Loan Estimate for 10 business days.
Processing
Once the application has been submitted, processing begins. The processor orders the credit report, appraisal and title report, then verifies the information on the application. The entire mortgage package is then put together for submission to the lender.
Requested Documents
Once you have completed the loan application, accepted the loan estimate and indicated your intent to proceed, we will request documents from you in order to obtain your loan approval. We will give you a specific set of documents needed for your particular loan.
Credit Reports
Most people applying for a home mortgage need not worry about the effects of their credit history. A credit profile is a picture of how you paid back the companies you have borrowed money from. The most common credit score is the FICO score, developed by Fair, Isaac & Company for the three main credit bureaus: Equifax, Experian, and TransUnion. You can improve your score by paying bills on time, keeping balances low, limiting accounts to what you need, checking your report for accuracy, and applying for credit conservatively.
Appraisal Basics
An appraisal of real estate is the valuation of the rights of ownership. The appraiser interprets the market to arrive at a value estimate using three approaches: the COST APPROACH, the COMPARISON APPROACH, and the INCOME APPROACH.
Underwriting
Once the processor has put together a complete package, the file is sent to the lender. The underwriter determines whether the package is an acceptable loan. If more information is needed, the loan is put into “suspense”; if acceptable, it is “approved.”
Closing Disclosure
The Closing Disclosure is a five-page form that provides final details about your mortgage loan, including loan terms, projected monthly payments, and closing costs. We are required by law to give it to you at least three business days before you close.
Closing
Once the loan is approved, the file is transferred to closing and funding. At closing you should bring a cashier’s check for your down payment and closing costs, review and sign the final loan documents, and bring identification and proof of insurance. Once the loan funds, the closing attorney records the mortgage note and deed of trust.
Summation
A typical “A” mortgage transaction takes between 14-21 business days to complete. Contact one of our experienced loan officers today to discuss your mortgage needs or apply online and a loan officer will promptly get back to you.
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Know Every Step Before You Take It
Ready to get started? Our licensed team makes the process simple. We compare your options and explain each one in plain language. There is no pressure and no obligation.
Why our process feels different
The mortgage process has fixed milestones; the difference is whether anyone explains them to you. We walk you through each gate before you reach it.
You always know where your file stands — updates arrive at every milestone, and your loan officer is reachable between them.
We proudly serve homebuyers, homeowners, and investors across Texas. Our office sits at The Star in Frisco. We are fully licensed under NMLS #2692844. Above all, we want to help you make a confident, well-informed decision.
Have a question before you begin? We are happy to help. Reach out today and a friendly loan officer will walk you through the next steps.
Also, you can review independent tips from the Consumer Financial Protection Bureau. When you are ready, request your free quote today.