How Does The Mortgage Loan Process Work ?
Obtaining a mortgage requires several steps, including preapproval, appraisal and underwriting, before you’re ready for closing. 1. Prequalification Prequalification will give you a quick estimate of how much you can borrow for your mortgage. You’ll share basic financial information, including your income, savings and outstanding debts. There’s usually no fee to get prequalified, and you can apply quickly by phone or online. However, getting prequalified doesn’t guarantee you’ll qualify for the mortgage. 2. Preapproval Preapproval is much more thorough than prequalification. The lender will review your financial situation, similar to when you officially apply for a mortgage. You may be required to pay an application fee. Expect to submit complete financial documents, including: W-2s for the previous two years Pay stubs Proof of bonuses Your most recent federal tax return Two to three months of bank and investment statements (such as brokerage, 40...