The Mortgage Process: A Step-by-Step Guide

About the author: This guest post was provided by Kyle Chezum, a content specialist at helps homebuyers compare mortgage rates, find local lenders, and locate the best mortgage packages available.

It may seem that the process of obtaining a home mortgage is highly complex.  You may have researched interest rates and made the decision to move forward, but you’re uncertain about the steps involved.  If this is the case, read on as we walk through the mortgage funding process step by step.

1.  Shop for a loan. This is the part you’re probably already doing, whether you know it or not.  This is the part where you simply research local lenders and try to determine which one will best meet your needs.  Compare mortgage rates offered by different loan officers and brokers.  Determine what loan length and type will work best for you.  If you qualify, research getting an FHA home loan or a VA home loan, and ask lenders about other programs that are available.

2.  Get preapproved. This is an important step that often gets overlooked.  Did we mention that the first step, above, should be complete before you start hunting for a new home?  You’ll need to complete this second step before you can actually place an offer.  Talk to your lender about the preapproval process and get this done before you try to purchase.

3.  Apply for the loan. You’ve found a home, you’ve made an offer, and you’re already preapproved.  The next thing to do is actually apply.  Fill out whatever paperwork your lender requires as fast as possible to avoid unnecessary delays and confusion in the loan process.

4.  Sit back and wait. Your loan needs to go through the lender’s underwriting department.  This is where the lender determines whether to fully approve the mortgage or to approve it under certain new conditions.  In some cases, your application may be rejected at this stage.  If you’ve been preapproved, however, this likely won’t happen.

5.  Bring your wallet to the table. The loan closing, or settlement, is literally a meeting between all parties involved in the home purchase, and this meeting is where the money changes hands.  Often, more than one meeting will be required.  You’ll make the down payment and pay closing costs, and the lender will pay the purchase price to the home seller.  When the loan has closed, the home belongs to you and you owe your lender a lot of money.

There.  Not so bad, is it?  Of course, there is one final step, and it’s an ongoing step that will likely take years to complete.  This is the repayment of the loan, and yes, this part can get complicated.  But getting a mortgage is not as hard as it seems.

Thanks Kyle, a great, easy to follow, step by step guide to getting a mortgage to buy your new home.

If you would like to see what sort of homes are currently available in the Portsmouth NH area please visit us online at

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