A conventional mortgage. This term has been used by many people, including real estate agents,…
What To Expect During The Mortgage Process: From Application To Approval
It’s no secret that buying a house can be a big deal. If you’re anything like the majority of people, then the mortgage process may seem like a complex, somewhat mysterious journey, with too many steps and not enough transparency. It doesn’t need to be this way.
We at Latitude Home Loans believe that knowing each step of the mortgage process helps to calm your nerves and give you more control. When you know exactly what is coming up, it makes it easier to make informed decisions.
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This guide will walk you through the entire mortgage process, from the first application to the last signature at the closing.
Step 1: Preapproval – Your starting point
You need to have a budget before you start house hunting. Pre-approval is the first step.
A pre-approval is your financial greenlight. You provide a lender with your information (hopefully, us!) You give them some basic information (income, debts, credit), and they will give you an estimate on how much house you can afford. This is not a binding document, but it lets sellers know you are serious.
What to expect in this stage of the mortgage application process
- Fill out the application for a home mortgage with your basic financial information.
- You will receive a credit report (yes, it is a hard inquiry).
- You will need to submit supporting documents such as tax returns, bank statements, and pay stubs.
Many people believe that they must have perfect credit or pay 20% upfront to be considered. This is not true. Pre-approval can be a great way to discover that you’re in much better shape than you thought.
Latitude Home Loans can get you pre-approved in as little as a day. Sometimes less.
Step 2: Complete the application – Now it’s time to get serious
After your offer has been accepted and you have found the house you want, you can move on to the mortgage application.
You’ve done a lot of the work if you have already been pre-approved. Update any changes and submit a detailed version of the original application.
The mortgage process begins with:
- Finalizing your loan type (FHA, conventional, etc.)
- You can lock in your rate of interest (or wait if the markets are iffy).
- Please provide any missing documentation (it does happen, so don’t be alarmed).
A Loan Estimate will be provided to you, which includes projected costs such as monthly payment, closing costs, taxes, and insurance. It is important to read it. Ask questions. You are making a major decision, and you need to understand the numbers.
Step 3: Processing – Behind-the-Scenes Work Begins
After you submit your application, we begin the real work.
A processor (yes, it’s a human) pulls all the pieces together. Imagine putting together all the pieces of a puzzle to form a clear financial picture.
This is what we do during this stage of the mortgage process.
- Verifying your employment and income (yes, we will call your employer).
- Double-check your bank statements and taxes
- Ordering an appraisal of the home to ensure the value is sufficient for the loan
- Automated Underwriting System (AU)
This can take anywhere from a few days to two weeks, depending on the speed at which everything is received. We pride ourselves on keeping this phase as quick as possible. Our average time between loan submission and clearance is only 12 days.
It’s normal to receive requests for more documents. It’s normal. Annoying? Maybe. Normal. Keep your eyes open, and you will see things move faster.
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(561) 225-4440
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Step 4: The decision makers – Underwriting
Underwriters are the people who review everything very carefully and give the final green light to your loan.
Consistency is what they look for, not just the numbers. Is your income stable, your debt manageable, or the loan secure?
Expect them to:
- Verify that all documents are complete and accurate
- Ask for clarifications on any issue that seems off. A large deposit without explanation is one example.
- Make sure you follow the guidelines for your loan type.
It may seem like a long process, but the underwriter is there to protect both lenders and borrowers. They are cautious because it is necessary.
You’ll receive a conditional approval if everything looks okay. You’re almost done. You’re almost there.
Step 5: You are at the Finish Line!
Closing is the last and most exciting stage in the mortgage process.
Here, everything comes together. Sign documents, pay the remaining costs, and get your keys. It’s perfectly fine to cry a little.
Before you sit at the closing table, there are a few things that need to happen:
- At least three days before the closing, you’ll get a Closing Disclosure. It’s important to read it. This document shows the final terms of your loan and its costs.
- Your funds will be transferred via wire transfer, usually for the down payment and your closing costs.
- Your lender (like us!) Your lender (like us!) will send you the closing documents.
The deed is recorded after signing. You are now a homeowner. You’re a homeowner.
Real Talk: Mortgage Process isn’t Perfect
Let’s just be honest. Even the best teams can have hiccups. Low appraisals. A document goes missing. You forgot to sign something.
It’s okay. Really. It’s important to choose the right lender. Latitude Home Loans doesn’t just move quickly, but we also stay calm even when things don’t go as planned.
We’ve done this a hundred (or maybe thousands) of times. We’ll handle anything that comes up. We make sure that you are always informed.
How long does the mortgage process take?
The golden question. As with most real estate questions, the answer depends.
Mortgages can take from 3 to 6 weeks on average. With the right preparation and if you stay on top of your part, you can make it faster.
Latitude Home Loans’ goal is to be fast without sacrificing accuracy. We invest in the most advanced technology and are in constant contact with our borrowers. From loan submission to clearance, our average timeframe is 12 days. This is not only fast, but industry-leading.
Final Thoughts – It’s not a mystery, but a process
Give yourself credit if you have made it this far. It’s not easy to learn about the mortgage process, but it’s important.
What you should remember
- Pre-approval early is important. This sets the scene.
- Stay organized and responsive.
- Ask questions. Ask questions.
- Select a team that communicates well and cares.
Latitude Home Loans is not just a company that checks boxes. From the home loan application through to signing that final document, we’re with you every step of the way. The mortgage process doesn’t have to be confusing or overwhelming–especially when you’ve got the right people on your side.
We can help you buy your first or third home, or refinance to save money.
The Mortgage Process in Steps:
- Pre-Approval – Your financial green light
- App – Enter details and collect documents
- Process – the behind-the-scenes prep work
- Underwriting – Final review and decision
- Close – Sign, Fund, and Move in
Are you ready to begin your journey?
Let’s talk. Latitude Home Loans is here to help you take the first step.
Contact Us
(561) 225-4440
Email us today
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