• 
  1. Get Your Pre-Approval
• 2. Find a Property
• 3. Apply for a Mortgage
• 4. Complete Loan Processing
• 5. The Underwriting Process
• 6. Close on the Property
• FAQs
• The Bottom Line

Mortgage Process Explained

How to Get a Mortgage in 6 Steps

By 

Matt Ryan Webber

Updated November 19, 2024

Reviewed by 

Doretha Clemon

Fact checked by 

Vikki Velasquez

Getting a mortgage can seem daunting. You’ll need to make big decisions about mortgage types, lenders, and properties. However, at its most basic level, the mortgage process involves only six steps: pre-approval from mortgage lenders, house shopping, mortgage application, loan processing, underwriting, and closing. Understanding each of these steps can help you weather the more complicated aspects of the process. In this guide, we’ll explain everything you need to know.

Key Takeaways

• The mortgage process is complicated but can be broken into six steps: pre-approval, house shopping, mortgage application, loan processing, underwriting, and closing.
• It’s a good idea to get pre-approval for a mortgage before you start looking for a property, so you know what you can afford.
• Once you’ve found a property and put in an offer, expect the mortgage closing process to take 30 to 60 days to complete.
• Check all of your paperwork carefully. You will be paying for your mortgage for a long time, so the small print can end up costing you a lot of money.

1. Get Your Pre-Approval

Before you can go house shopping, you need to secure your pre-approval from a mortgage lender. This shows sellers that you’re a serious buyer, as well as helps you narrow down your options during your home-buying search.

Start by figuring out how much you can afford to pay. Keep in mind that an accurate picture of your monthly costs includes not just the loan principal, but also interest payments, taxes, and homeowners insurance. And if you aren’t able to make a 20% down payment on a property, you’ll also need to pay for private mortgage insurance (PMI).1 A mortgage calculator can show you the impact of different rates on your monthly payment. 

Calculate Your Monthly Payment

Your monthly mortgage payment will depend on your home price, down payment, loan term, property taxes, homeowners insurance, and interest rate on the loan (which is highly dependent on your credit score). Use the inputs below to get a sense of what your monthly mortgage payment could end up being.Enter Home Price

$Enter Down Payment

$

%Select Loan Term

30 years20 years15 years10 yearsEnter APROr Use Credit Score For Estimate

%

Or

Your Credit Score760-850700-759680-699660-679640-659620-639

+ More Options

Monthly Payment

$2,649.04/monthfor 30 yearsMonthly Payment$2,649.05

Principal & Interest

$2,264.38

Property Taxes

$256.67

Homeowners Insurance

$128.00

Mortgage Size$352,000.00

Mortgage Interest*$463,176.16

Total Mortgage Paid*$815,176.16

*Assuming a fixed interest rate. A variable rate could give you a lower upfront rate. To understand more click here.Expand

Knowing your budget will help you determine which type of mortgage is right for you. There are several types of mortgages available with different down payment options, credit score requirements, and income restrictions. The most common type of home-buying loan issued in the United States is a conventional mortgage, which means that the mortgage is issued by a private lender. However, you might also be eligible for a mortgage through the Federal Housing Administration (FHA), U.S. Department of Agriculture (USDA), or U.S. Department of Veterans Affairs (VA).

Once you have an idea of the type of mortgage you would like, you can approach mortgage lenders for pre-approval. A pre-approval is a document that states the maximum amount your mortgage lender is willing to loan to you. You can get pre-approved quite quickly—your mortgage lender will just need to run a three-bureau credit report (called a tri-merge) that shows your credit score and credit history as reported by third-party credit bureaus.

Warning

Mortgage lending discrimination is illegal. If you think you’ve been discriminated against based on race, religion, sex, marital status, use of public assistance, national origin, disability, or age, there are steps you can take. One such step is to file a report to the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), or the U.S. Department of Housing and Urban Development (HUD).

2. Find a Property

Most people start looking for properties long before they are pre-approved for a mortgage, and perhaps before they are even thinking of buying a home. But once you have your pre-approval, you’re ready to begin looking in earnest.

There are many ways of searching for a home. You can use online real estate portals like Zillow or Trulia, buy a house at auction, or even look for an off-market home. Just make sure you don’t fall into some of the common mistakes people make when house-hunting.

Making an Offer

Once you’ve found a suitable property, you’ll need to put in an offer on it. Your real estate agent should help you to do this, as different sellers and properties require different sorts of offers.

At this stage, you’ll normally have to put down earnest money, a deposit that indicates you are seriously interested in a property. T