What are the steps for applying for a loan?

1. Pre-qualification: A pre-qualification is the first step and answers the following questions:

  • What is the best loan type for me?
  • How much money will I need to put down?
  • What kind of payments should I expect at the sales prices I am interested in?
  • How much cash total will I need to buy?

And any additional questions that you would have.


2. Pre-approval: A pre-approval is something that you will typically need to put an offer on a property.  A seller, before they take their home off the market, will want to know that you are already approved for financing.  This will require enough information to run credit, and documents that prove your income and assets.

3. Contract: Shop for a home and write an accepted offer: Once you have an accepted offer (a ratified contract) with all terms agreed to, at that point you can lock in your rate.  You’ll need to sign a series of documents that we are required to disclose to you.

4. Appraisal: In addition to reviewing your creditworthiness, we have to do an appraisal to make sure the property is worth the price you are paying for it.

5. Underwriting: After receiving the appraisal, we underwrite your loan.

6. Closing: Following underwriting approval, we prepare the documents you’ll sign to borrow from us as well as purchase the property from the seller.  Congratulations!