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Home Loan Process


The first step in a buyer’s home search should be meeting with a mortgage broker. The broker will review the buyer’s financial history, submit this information to obtain pre-approval, and then provide the buyer with hypothetical purchase prices and loan amounts.

This then gives the buyer a jumping off point - with a price range in mind, they can begin meeting with realtors and looking for a house. Realtors likely will not show homes to potential buyers without pre-approval/pre-qualification from a mortgage broker or loan officer.


After a contract has been accepted and executed by the sellers and the buyers, the buyers will have five days to make a formal application with their mortgage broker/lender.  

The mortgage broker/loan officer will register the loan, lock-in or float the interest rate per the borrower’s instructions and then generate the Lender’s Estimate of loan terms and the initial disclosures upon receiving a conditional approval.

​After paperwork filed by the mortgage broker/loan officer, the buyer will need to provide a checklist of documents to the borrower. The loan request is then submitted to a mortgage processor to request an appraisal. The mortgage processor submits documents for conditional approval.

​Upon receipt of the conditional approval, the processor contacts the borrowers to review further documentation needed. Upon receipt of the appraisal, a copy is emailed or mailed to the buyers for review and written acknowledgment of receipt (this is required by federal law). The processor also forwards the title commitment and related title documents to the lender for review and approval.

The buyer needs to get quotes for hazard/windstorm insurance (and flood insurance if the property is located in a federally designated flood hazard zone). By state law, it is the borrower’s right to choose the insurance agent/company they would like to use. Upon the buyer’s choice of insurance, the insurance agent provides proof of insurance coverage(s) to the processor, who then forwards it to the underwriter for approval.

A survey of the subject property showing the location of the home on the subject property is also requested during this time period. The completed survey is submitted to both the settlement agent and the lender for approval.

Upon obtaining a “Clear to Close” status the loan request is then forwarded to the closing department where the closing instructions and documents are prepared and forwarded to the settlement agent.

Home Loan Process: Text
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