The Mortgage and the Loan Process

The Mortgage and Loan Process

The majority of homeowners fund the purchase of their home by borrowing money from a lender in the form of a mortgage. Below are the steps in process of obtaining a mortgage:

1. Financial Pre-Qualification or Pre-Approval
• Application and interview (often times performed over the telephone)
• Buyer provides pertinent documentation including verification of employment
• Credit report is requested by the lender
• Appraisal is scheduled for the buyer’s current home, if there is one.

2. Underwriting
• Loan package is submitted to an underwriter for approval

3. Loan Approval
• Parties are notified of approval
• Loan documents are completed and sent to title company

4. Title Company
• Title examination, insurance, and title survey are conducted
• Borrowers come in for final signatures

5. Funding
• Lender reviews the loan package
• Funds are transferred electronically

Why should you pre-qualify?
• We recommend that our buyers get pre-qualified before beginning their home search.
• Knowing exactly how much you can comfortably spend on a home reduces the potential frustration of looking at homes beyond your means.

Are you a first-time homebuyer?
You should check the Texas Department of Housing and Community Affairs’ website: