First, you need to prequalify for the loan with your financial institution. This involves answering a few simple questions, which in turn begins the application process. The type of home, approximate cost of the home, how much you'll want to borrow, the type of loan, and personal identification information, along with financial and employment histories, make up the prequalification phase. This is typically done on a single form and requires, at this point, no authentication or documentation.
It's usually after the prequalification has been done that your financial services representative works with you to complete the application. This includes determining the type of mortgage required and locking in an interest rate. An application fee is often required at this point, and sometimes, your lender will have online tools available to check on the approval status of your application.
During the documentation confirmation phase, you'll need to supply proof of current income, assets, expenses, and employment history. The lender will request a property appraisal or evaluation and a title search to avoid fraudulent activity. The documentation collected will satisfy the conditions required to approve the loan, and you'll be asked to lock in your interest rate and mortgage type.
Once the loan is approved, you are in the final stage of home ownership financing. At this point, you may have the option to arrange for the automatic deduction of your monthly or biweekly mortgage payment from a checking or savings account. Tax and interest information is reviewed, and information about an escrow (or reserve) account is confirmed. An amortization schedule is then provided to you.