The Home Loan Process: An Easy 5-Step Guide

The mortgage loan process can seem intimidating, especially if you’re a first-time homebuyer. Luckily, you don’t have to experience it alone. We’re here to make the home loan process simple and painless by being the local experts you can count on to guide you every step of the way.

It helps to know what’s coming at each stage of the process, so you can be prepared to ask the right questions, talk to the right people, and make good decisions. Here’s what to expect.

Step 1: Getting Pre-Qualified

The first step is to get pre-qualified. This greatly improves your odds of getting your offers accepted. Your real estate agent will be submitting offers with your pre-approval letter attached. The seller’s agent will often communicate with the lender to confirm the qualifications of the potential buyer. Having everything in place and approved upfront makes this process seamless. Getting pre-qualified also paints a clear picture of what you can afford and the price range of homes you should be looking at. Expect to provide information on your income, assets, and credit during this stage of the homebuying process. Also, be prepared to discuss the best loan product to suit your needs. You can learn more about the product offered by BluPrint here.

Step 2: Find Your Dream Home

Now that you’ve been pre-approved, it’s time for the fun part — house hunting! Work with a real estate agent to find the home of your dreams. They’re knowledgeable and have housing-market insights that can be far more beneficial than doing the research on your own. After visiting properties with your agent and picking out the home you want, it’s time to make an offer. Your real estate agent will know the ins and outs of how to structure the offer. It may include contingencies (or conditions) that must be satisfied before the sale is complete. These will include items like the appraisal and any inspections that you want to have completed on the property.

Step 3: Locking Your Rate

Now that you’ve found your dream home and your offer has been accepted, it’s time to make a final decision about your rate and terms. When shopping for a mortgage, remember your rate doesn’t depend on your application alone. It also depends on the type of loan you get. Selecting the right loan product and locking the right rate is very important. You will work together with your BluPrint Loan Originator to make these final decisions. Make sure you ask questions and have a detailed understanding of what your payment and terms will be. Remember – You will potentially be making this payment for the next 30 years, and you need to be comfortable with that. The BluPrint Loan Originators are dedicated to providing successful and sustainable homeownership. They are industry experts that are always available to guide and advise you.  You will also be presented with initial loan disclosures that detail all of the estimated costs and terms of the loan. 

Step 4: Processing and Underwriting

Once your loan application has been finalized, the mortgage processing stage begins. For you, the buyer, this is mostly a waiting period. You will receive inspections of the property, BluPrint will coordinate an appraisal, and documents may need to be updated. All of this will be added to your application by the Loan Processor and submitted to the Underwriting Team. The Underwriter will validate that your application and documentation meet the appropriate lending standards. They will also review the appraisal and title to confirm that the property is safe, habitable, and represents proper collateral for the mortgage. You can also expect to remove the contingencies for financing, inspections, and appraisal. Once any conditions are satisfied, the Underwriter will issue the final approval and clear the loan to proceed to closing. Your Processor and Loan Originator will begin to coordinate the final closing process with all parties at this time.  

Step 5: Closing

You’ve made it to the final step! The lender will send the closing documents to the closing attorney or title company. They will organize everything and present them to both the seller and the buyer. One of the most important documents is the Closing Disclosure. It should look like the Loan Estimate you received when you originally completed the full loan application. The Loan Estimate gave you the expected costs.  The Closing Disclosure confirms those costs. If everything is in order, you’ll sign all your documents and wire your required funds to the title company. Once everything is in order, the deed gets sent to the county for recording, you will receive your keys, and just like that — congratulations, you’re now a homeowner!

If you have questions or want to chat with us about a loan, or if you’re interested in learning more about career or partnership opportunities, contact us here.