What to Expect From the Mortgage Lending Process—and How to Prepare
For many buyers, the lending process can feel like the most intimidating part of purchasing a home. Understanding what to expect—and how to prepare—can make the experience far less stressful and help prevent delays once you’re under contract.
Pre-qualification vs. pre-approval: know the difference.
Pre-qualification is an early estimate of what you may be able to borrow, based on information you provide verbally or online. It’s a helpful first step, but it doesn’t carry much weight with sellers. Pre-approval goes deeper. A lender reviews your credit, income, assets, and debts to determine a more accurate loan amount. In today’s market, a pre-approval is essential before making an offer.
Getting your finances ready.
Before applying for a loan, take time to review your financial picture. Check your credit report for errors, pay down high-interest debt when possible, and avoid opening new credit accounts. Lenders look closely at your debt-to-income ratio, employment history, and available funds for down payment and closing costs. Having recent pay stubs, tax returns, and bank statements organized upfront can significantly speed up the process.
What happens once you’re under contract.
After your offer is accepted, your lender will order an appraisal and begin underwriting—the detailed review of your financial file. During this time, you may be asked for additional documentation. This is normal and doesn’t mean something is wrong. Prompt responses help keep your closing on schedule.
What not to do before closing.
Small financial changes can create big problems late in the process. Avoid these common mistakes:
Don’t open new credit cards or take out loans
Don’t make large purchases, even if “paid in cash”
Don’t change jobs or income structure
Don’t move money between accounts without asking your lender
Ready to get started?
If you’re thinking about buying a home, starting with the right lender can make all the difference. I work closely with a trusted lending partner who takes the time to educate buyers, answer questions, and set realistic expectations from the very beginning. If you’d like an introduction—or just want to talk through the process—reach out anytime. Having the right team in place early helps everything else fall into place.