🔑 Understanding the Mortgage Process: Step-by-Step from Pre-Approval to Keys
Buying a home is exciting, but understanding how financing works is the key to making it smooth and stress-free. Here’s your full mortgage journey, simplified.
Step 1: Check Your Credit & Set a Budget
- Review your credit report on annualcreditreport.com
- Aim for a credit score of 620+ for conventional loans
- Determine how much you can afford monthly (don’t forget taxes & HOA)
Step 2: Get Pre-Approved with a Lender
- Choose a trusted mortgage lender or broker
- You’ll need: 2 years of W-2s, tax returns, pay stubs, bank statements
- A pre-approval letter gives you stronger buying power when submitting an offer
Step 3: Understand Your Loan Options
- Conventional Loans: Best for buyers with good credit
- FHA Loans: 3.5% down, flexible credit
- VA Loans: Zero down (for veterans)
- DSCR Loans: For investors using rental income to qualify
- Non-QM Loans: For self-employed or unique income types
Step 4: Offer, Processing & Appraisal
- Once under contract, your loan enters processing
- An appraisal will be ordered by your lender to confirm value
- You’ll submit updated docs as needed and complete inspections
Step 5: Final Approval & Closing
- After final underwriting, you’ll receive a Closing Disclosure
- Review and sign the docs
- Bring your certified check (or wire funds) to the closing table
- Get your keys and celebrate!
💡 Pro Tip: I work with preferred lenders who move quickly and explain every step clearly. Ask me for a referral!
Karishma Naidu Vohra is a dedicated real estate agent renowned for her entrepreneurial spirit and commitment to excellence. After developing her skills in Los Angeles, she found her true passion in Houston, where she specializes in buying, renting, and selling properties.