The mortgage process step by step, from application to closing

1. Pre-approval

A lender checks your credit and documents and tells you how much you can borrow. What you need.

2. Find a home and sign a contract

Your offer should include contingencies for inspection, appraisal, and financing. Your earnest money deposit goes into escrow.

3. Formal application

Once you have a property address, you complete the full application. Many borrowers compare two or three lenders at this point.

4. Loan Estimate

Each lender must send a standard Loan Estimate within three business days of your application. Compare rate, points, lender fees, and cash to close. Then choose a lender and lock your rate.

5. Processing and underwriting

The lender verifies income, assets, and credit, orders the appraisal and title search, and may ask for letters of explanation. Respond fast. Most delays come from missing documents.

6. Appraisal and final approval

The appraiser confirms the home's value supports the loan. If it comes in low, you can renegotiate, bring more cash, or challenge the appraisal with better comparable sales. Once conditions are met you get clear to close.

7. Closing Disclosure and closing day

You receive your Closing Disclosure at least three business days before closing. Compare it line by line with your Loan Estimate. On closing day you sign, the funds move, and you get your keys. Confirm wiring instructions by phone at a known number. How to avoid wire fraud.

After closing

Your loan may be transferred to a new servicer. You will get written notice, and your terms do not change. Keep your closing documents.