Although you can look at online listings and often tour homes before you start the mortgage process, almost all sellers and listing agents will require proof of financing in the form of a prequalification letter if you plan to submit an offer for purchase. We would recommend submitting an application and getting your prequalification ahead of time so that you have a good idea of what you can afford and what price range you’re most comfortable with.

Often times, these terms will be used interchangeably as a way of stating that you have spoken with a mortgage loan officer who confirmed that you are eligible for a mortgage. The key difference between being prequalified and being preapproved is that a loan which has been preapproved has been reviewed and verified by a mortgage underwriter, whereas a loan which has been prequalified has not. A Loan Officer can issue a prequalification based on stated information, but a preapproval must be documented and and checked.

Think of it like measuring twice and cutting once: your prequalification is the first measurement, your preapproval is the second measurement for extra detail, and the final cut is when you sign the dotted line at closing.

Buying a home is one of the biggest decisions you will make in your lifetime. Our goal is to make the process as smooth and hassle-free as we can, and understanding the process will give you a head start. Here are the steps we’ll walk you through:

Application & Qualification

First, we need to know more about you! You can submit an application online or over the phone, and you’ll share information about your credit, income, and assets, along with your preferred contact information. Once we have a full application and an idea of what your goals are with your purchase, we can determine a budget for you to shop with. We’ll provide a prequalification letter to you and your real estate agent showing the high end of your purchase price budget.

Shopping for a Home

Once you have your budget, the next step is finding the right place. You and your real estate agent will shop for properties within you price range until you find the house you want to make a home. At this point, your agent will help you negotiate your offer for the purchase.

Under Contract & Underwriting

Congratulations━you’re under contract! When you have a bound agreement for a purchase, we’ll begin gathering documentation to verify the information you gave us at your application. This is also when we’ll order an appraisal on the property so you know that you’re spending the right amount of money on your new house. Our underwriters will review the file we prepare and give a final approval on the mortgage.

Closing

You did it! Your loan is fully approved, your closing date is scheduled, and your funds are ready to wire. You and your real estate agent will coordinate a date and time to visit a title office to complete the necessary paperwork for taking ownership of the home. The title office will then assist with the transfer of monies, share copies of your purchasing documents, and hand over the keys to your new home.