June is National Homeownership Month, making it the perfect time to understand the full path to homeownership. If you are planning to buy a home, especially for the first time, knowing what to expect during the mortgage process can take away much of the stress. This guide walks you through each step and highlights how working with the right mortgage professional keeps everything on track.
Step One: Pre-Approval
The first and most important step in your mortgage journey is pre-approval. This is where a lender reviews your income, credit, debt, and assets to determine how much home you can afford. You will provide documents like pay stubs, W-2s, tax returns, and bank statements. A pre-approval gives you a clear budget and shows sellers that you are a serious buyer.
Getting pre-approved during National Homeownership Month is a smart move. It sets you up to take advantage of the busy summer buying season when more homes are available and families want to move before the school year starts.
Step Two: House Hunting and Making an Offer
Once you are pre-approved, you can confidently shop for a home. With your budget in hand, you and your real estate agent can focus on properties that meet your needs and price range. When you find the right one, your agent will help you make an offer.
A strong offer backed by a pre-approval letter shows sellers that you are ready and able to purchase. This can be a deciding factor in competitive markets.
Step Three: Loan Processing and Underwriting
After your offer is accepted, you officially begin the mortgage loan process. Your lender will gather more documentation and begin verifying all the details. This part of the journey includes ordering the home appraisal and reviewing your financial file in depth.
The underwriter is the key decision-maker in this stage. They assess your risk level and decide whether to approve the loan. This step can feel slow or stressful, but as your mortgage originator, I help keep the process moving by staying in close contact with both you and the lender.
Step Four: Loan Approval and Closing Preparation
Once the underwriter approves your loan, you are almost there. You will receive a closing disclosure with your final loan terms and costs. You will need to review and acknowledge this document at least three business days before closing.
During National Homeownership Month, this is the moment when buyers start to see the finish line. It is also when I double-check that all documents are accurate and that nothing is missing before you sign.
Step Five: Closing Day
Closing is the final step. You will sign your loan documents, pay your closing costs and down payment, and finally get the keys to your new home. This is the most exciting moment in the entire journey and one worth celebrating.
By knowing what to expect and working with a trusted mortgage professional, you can turn a stressful process into a rewarding milestone. National Homeownership Month is a great reminder that preparation and expert support make all the difference in achieving your homeownership goals.
