Prepare Documents

Before you even tour one house, consider getting pre-approved for a mortgage. This will make your ultimate offer stronger and give you a chance to go over your options. Pre-approval requires several documents, including:

• Identification (driver's license, passport, etc.)

• Two most recent pay stubs

• Last two completed tax returns

• Recent bank and investment account statements

• Employment verification and proof of income

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This information will vary based on the loan type and income source, consult your mortgage broker for proper documentation needs  

Get Pre-Approved for a Mortgage

All of the documents from Step 1 will be required for lender pre-approval. Pre-approval is a much more thorough process than pre-qualification and is taken more seriously by sellers. A pre-approval letter from a reputable lender strengthens your offer and increases the chances of closing successfully.

During pre-approval, your mortgage broker will help you compare interest rates, loan programs, and other key factors.

Estimate Your Budget

After pre-approval, you’ll have a clear idea of how much you can borrow. Add this to your down payment savings to determine your maximum home budget.

You don’t have to borrow the full amount offered—consider your other expenses and financial goals when setting a comfortable price range.

Shop for Your Home and Make an Offer

Now that you know your budget, you can start searching for homes. Once you find a suitable property, make an offer. Your pre-approval letter will help strengthen your bid. If the seller accepts your offer, you'll enter a contract and provide an earnest money deposit.

Order a Home Inspection (ASAP)

Your contract likely includes an inspection contingency, allowing you to back out if serious issues arise. Schedule an inspection as soon as possible to avoid missing deadlines.

Choose your Loan Officer

Now it's time to finalize your lender. Different lenders offer slightly different rates and terms, so review your options carefully. You are not required to use the lender who pre-approved you.

Complete Your Mortgage Application

Submit all required documentation for final loan approval. This will include updated pay stubs and another credit check.

Processing and Underwriting

The lender will thoroughly review your documentation, verify employment, and evaluate the property’s eligibility for financing.

Home Appraisal

A professional appraiser will determine the home's official value. If the appraisal is lower than the purchase price, you may need to negotiate with the seller or provide a larger down payment.

Closing Day

On closing day, you'll sign key documents, including the deed and the mortgage note. Once all approvals and payments are complete, the property is officially yours. Congratulations and welcome home!