Mortgage loans can be very confusing for first time buyers and those only making a loan application every 10 or so years. Things change all the time so today's loan may be a lot different than you remember.
The main steps are as follows:
In the past this was not a big deal. Most anyone with average credit and a job could qualify. Today the process is strict and the best way to save time and stress is per-qualification. This letter in hand will help during the price negotiation process and prevent you from over spending by accident.
Knowing the exact amount required will allow you to make decisions based on facts. Can you afford the replace all the counter tops before moving in or will that be a longer term project.
You can lock in your rate to prevent any stress with the up and down rate changes in the market. Now you know what the exact payment will be for each home you look at. Be sure to look at 15-20 year terms. This is a great way to build equity and pay off the home fast.
After you have a home under contract you complete the loan application process and get final approval.
During this time the home under contract will need to pass appraisal and a home inspection is also a good idea.
Assuming a clear title and title insurance was purchased the paperwork is under way to set a closing date.
The last step is signing all the loan documents and paying for the home...as well as having the seller complete needed transfer of ownership documents. You walk out with keys in hand.