When you get pre-qualified (pre-approved), lenders will estimate your finances based on the information you provide. A pre-approval will tell you exactly how much the bank is willing to lend you and specify the costs of obtaining the loan. Furthermore, getting pre-approved will demonstrate to sellers that you’re a serious buyer who is ready and able to buy their home.

The next stage in the home loan process is house hunting. It involves interviewing Realtors, finding a home, executing a contract, and completing your mortgage process.

Once the seller accepts your offer, it’s time to apply for a mortgage. You typically have 45 to 60 days to fulfill your purchase contract, so you need to move fast. Within few days of submitting your application, your lender sends you a loan estimate, including your approximate interest rate, monthly payment, and closing costs. To move forward, you need to verify your income and assets. This requires extensive documentation, which is necessary for the lender to ensure you’ll be a successful homeowner who can handle loan payments over the long term. Assuming everything checks out, you should receive the “clear to close,” which means that the lender has approved your purchase.