The Mortgage Process: A Step-by-Step Guide to Homeownership

Navigating the mortgage process can feel overwhelming, but breaking it down into steps can make it much more manageable. Whether you’re a first-time homebuyer or looking to refinance, understanding each phase will help you feel confident and prepared. Here’s a simple guide to the mortgage process:

1. Get pre-approved 

The first step in your home-buying journey is getting pre-approved for a mortgage. This involves completing a loan application, which helps determine how much home you can afford. Having a pre-approval increases your negotiating power when making a purchase offer, giving you a significant advantage as a buyer. (If you’re looking to have even more of a competitive edge, the HUNT Mortgage Pre-Purchase Commitment may be an option to consider!)

2. Start your house HUNT

Now comes the exciting part – shopping for your dream home! With your pre-approval in hand, you can begin looking for houses that fit your budget and preferences. Once you find the right one, the terms of the sale will be negotiated. Working with a real estate professional can help provide guidance and advice for a smooth experience as you navigate this part of the homebuying process.

3. Submit your mortgage application

After your offer is accepted, you’ll formally gather and submit the necessary paperwork to support your mortgage application. This includes income and asset documents, which your lender will use to verify your financial situation. Providing accurate and complete documentation ensures a smoother process and prevents delays.

4. Receive your loan decision

A mortgage underwriter will assess your application to determine if you qualify for the loan. They may request additional documentation or clarification on certain aspects of your finances. With all the necessary information in hand, your lender will make a decision on your loan application. The loan can be:

• Approved: You’re ready to move forward!
• Declined: Your application didn’t meet the lender’s criteria.
• Conditionally approved: Approval is contingent on providing additional documentation or meeting specific conditions.
• Counteroffer: The lender offers alternative loan options that may better suit your financial situation.

5. Closing day

Happy closing day! Now your loan has been approved, you’re cleared to take the final step in the mortgage process. This involves signing all the final loan and escrow documents. Once everything is signed and the necessary loan funds are provided by the lender, the transaction is complete – welcome home!

If you or anyone you know has questions about getting started with the home loan process, we’re happy to help. Get in touch with HUNT Mortgage today and let us assist you on your journey to securing financing and achieving your homeownership goals.