How the Mortgage Process Works
While every lender's process differs slightly, most home loans move through a similar general sequence from application to closing.
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1. Get Pre-Qualified or Pre-Approved
Pre-qualification is a quick, informal estimate based on self-reported information. Pre-approval is more rigorous — a lender verifies income, assets, and credit — and typically results in a letter that strengthens an offer on a home.
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2. Shop and Compare Loan Offers
Getting quotes from multiple lenders lets you compare interest rates, fees, and loan terms side by side. Requesting quotes within a short window generally has a limited impact on your credit score, since scoring models often treat rate-shopping inquiries as a single event.
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3. Submit a Full Application
Once you choose a lender, you'll complete a full application and provide documentation — pay stubs, tax returns, bank statements, and more — so the lender can verify your financial picture.
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4. Appraisal and Underwriting
The lender orders an appraisal to confirm the home's value, while an underwriter reviews your full file against the loan program's guidelines. This stage often includes requests for additional documentation.
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5. Loan Approval and Closing Disclosure
Once underwriting is satisfied, the loan is approved and you'll receive a Closing Disclosure outlining the final terms, monthly payment, and closing costs, which you review before signing.
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6. Closing
At closing, you sign the final loan documents, pay any remaining closing costs and down payment, and — once everything is recorded — receive the keys.
How Long Does It Take?
A typical purchase mortgage often takes several weeks from full application to closing, though timelines vary with loan type, lender workload, and how quickly documentation is provided. Refinances can sometimes move faster since there's no home purchase contract to coordinate around.
Documents Lenders Commonly Request
- Recent pay stubs and W-2s or 1099s (and often two years of tax returns for self-employed borrowers)
- Bank and investment account statements to verify assets and reserves
- Photo identification and Social Security number
- Information on other debts, such as auto loans, student loans, and credit cards
- Details of the property, including the signed purchase agreement for a home purchase