Mortgage Process Explained

How to Get a Mortgage in 6 Steps

Getting a mortgage can feel overwhelming. You’ll need to make big decisions about mortgage types, lenders, and properties. But at its core, the mortgage process comes down to six clear steps: pre-approval, house shopping, mortgage application, loan processing, underwriting, and closing.

Understanding each step can help you navigate the journey with more confidence and fewer surprises. Let’s break it all down so you know what to expect.

KEY TAKEAWAYS

• The mortgage process involves six steps: pre-approval, house shopping, mortgage application, loan processing, underwriting, and closing.

• Get pre-approved before you shop to understand your budget and show sellers you’re serious.

• Expect closing to take 30 to 60 days after your offer is accepted.

• Read all your paperwork carefully—you’ll be paying this loan for years, and small details can have big financial impacts.

1. Get Your Pre-Approval

Before you even start looking at homes, secure a pre-approval letter from a mortgage lender. This proves to sellers you’re a serious buyer and helps you shop within your price range.

👉 Start by figuring out what you can afford. Factor in:

• Loan principal

• Interest payments

• Taxes

• Homeowners Insurance

• Private mortgage insurance (PMI) if your down payment is less than 20%

Use a mortgage calculator to estimate your monthly payment.

Types of Mortgages

Your budget and qualifications will help you choose the right type of loan:

• Conventional mortgage (most common)

• FHA, VA, or USDA loans for those who qualify

Once you know the type of loan that suits you, get pre-approved. This typically involves a credit check (tri-merge report) and a review of your income and debts.

2. Find a Property

Now the fun part—house hunting! With pre-approval in hand, you can search with confidence. Use websites like Zillow, attend open houses, or work with a real estate agent.

Making an Offer

When you find the right home:

• Submit an offer with the help of your agent

• Include earnest money (typically 1–2% of the purchase price)

• Add contingencies to protect your investment, such as:

  • The home must appraise close to the loan amount

  • Inspection must not uncover major issues

  • You must receive the final mortgage approval

3. Apply for a Mortgage

Time to finalize your loan. Even if you’re using the same lender that gave you pre-approval, you’ll need to provide documentation. Be prepared to share:

What Lenders Need

Employment

• Employer details, position, salary, time at job

Income

• W-2s, self-employment income, pensions, child support, etc.

Assets

• Bank accounts, retirement funds, investment accounts, gift funds

Debts

• Mortgages, car loans, credit cards, child support, etc.

Property Info

• Address, sale price, taxes, HOA fees, home type

Credit History

• Bankruptcies, collections, late payments

👉 Tip: Check your credit report at AnnualCreditReport.com. You’re entitled to one free report from each bureau per year—and right now, they’re offering weekly reports for free.

4. Complete Loan Processing

Your lender will now compile your details into a Loan Estimate, a standardized 3-page summary of your loan terms.

What Happens Now

• You’ll receive the estimate within 3 business days

• It’s valid for 10 days

• If you accept, loan processing begins

During this time, your lender will:

• Pull credit (if not done during pre-approval)

• Verify employment and bank balances

• Order inspection, appraisal, and title search

5. Go Through the Underwriting Process

Underwriters are the decision-makers behind your mortgage. They review your full file and verify everything.

They’ll also:

• Review your home appraisal to ensure the value supports the loan

• Issue a final decision:

  • Approved

  • Approved with conditions

  • Denied

If approved, you’ll confirm your locked-in interest rate—these are the terms you will have for the life of the loan.

6. Close on the Property

You’re almost there! At closing, you’ll review and sign all final documents. You’ll meet at the title company or attorney’s office.

Important Documents

The key one is the Closing Disclosure, which:

• Lists all final fees

• Shows how they compare to your original estimate

• Highlights any new or increased costs

Closing costs typically range from 2% to 5% of your home’s price.

👉 Tip: If new fees pop up or anything seems off, ask your lender or agent for clarification before signing.

Final Steps

You’ll have 3 days to review everything before the mortgage becomes official.

Also, you’ll do a final walk-through of the property 24 hours before closing to make sure:

• The home is vacant

• Any agreed-upon repairs are complete

FAQs

Who approves a mortgage?
Underwriters. While your lender collects info, the underwriter makes the final call.

How long does closing take?
Usually 21 – 60 days, depending on inspections and paperwork.

What are closing costs?
Expect 2%–5% of the home’s price, covering everything from appraisals to legal fees.

The Bottom Line

The mortgage process may seem complex, but it comes down to six clear steps. Whether you’re buying your first home or refinancing an existing one, Certified Home Loans is your local expert, here to guide you every step of the way.

We’re based right here in your community, so you’re never just a number to us—we’re here to answer your questions, explain the fine print, and help you make confident, informed decisions. This is one of the biggest financial moves you’ll make—let’s make sure you get it right.