Certainty Matters.

Before house hunting, potential buyers should get pre-approved for a mortgage. This involves submitting financial information to a lender who then evaluates credit history, income, debts, and assets to determine your loan terms.

Once pre-approved, buyers can start looking for a home within their budget. After finding a property and agreeing on the price, they formally apply for a mortgage. This step requires updated detailed financials and documentation.

When you lock in a rate, you and the lender agree to a specific interest rate for your mortgage. This rate remains unchanged irrespective of market fluctuations during the lock period. The lock-in period usually ranges from 15 to 60 days.

The lender processes the application, which includes verifying all the information provided by the applicant. They may request additional documents or clarification. During this stage, an appraisal of the property is also conducted to assess its market value.

In this critical phase, the underwriter reviews all documentation and decides whether to approve or deny the loan based on criteria like credit score, debt-to-income ratio, and property value. This is where the lender takes on the financial risk of the loan.

The final step is closing. This involves signing a variety documents that finalize the mortgage process. The buyer typically pays the closing costs, and the ownership of the property is transferred. Once this is completed, the buyer is now the new owner of the home!