What to Expect From Start to Closing
A Clear Breakdown of the Process
Buying a home should feel straightforward. This buyer's guide explains how the loan approval process works, what to expect along the way, and the mortgage options that may be available so you can make informed decisions without unnecessary surprises.
Mistakes That Can Delay or Kill a Deal
Avoid New Credit at Closing
Avoid New Credit at Closing
Avoid New Credit at Closing
Conventional loans are one of the most common mortgage options and are not backed by the government. Qualification depends on factors such as credit, income, assets and debt. Understanding the loan approval process early can help determine whether conventional financing is the right fit and what other mortgage options may be available.
Hold Off on Big Purchases
Avoid New Credit at Closing
Avoid New Credit at Closing
FHA loans can offer more flexible qualification guidelines and lower down payment options than some conventional loans. They can be especially useful for first-time homebuyers, although FHA financing is available to eligible repeat buyers as well. Understanding the loan approval process can help determine whether FHA or other mortgage options are the best fit.
Stay Employed Till Closed
Avoid New Credit at Closing
Be Careful with Bank Deposits
VA loans provide a valuable mortgage option for eligible veterans, active-duty service members and certain surviving spouses. Qualified borrowers may be able to purchase with no down payment, subject to VA and lender requirements. Reviewing eligibility and the loan approval process early can help determine whether VA financing is the right option for the purchase.
Be Careful with Bank Deposits
Be Careful with Bank Deposits
Be Careful with Bank Deposits
Jumbo loans are designed for loan amounts that exceed the conforming loan limits applicable to the property. They are commonly used for higher-priced homes and may have different credit, income, asset and reserve requirements than conforming loans. Reviewing the loan approval process early can help determine which jumbo mortgage options may fit the buyer's situation.
Avoid Co-Signing Loans
Be Careful with Bank Deposits
Avoid Co-Signing Loans
Bank statement loans may provide an alternative for eligible self-employed borrowers whose tax returns don't fully reflect their business cash flow. Instead of relying solely on traditional tax-return income, these programs may use qualifying deposits from personal or business bank statements to evaluate income. Requirements vary by lender and program, so reviewing the borrower's full financial picture is important when considering these mortgage options.
Pay Bills on Time
Be Careful with Bank Deposits
Avoid Co-Signing Loans
DSCR (Debt Service Coverage Ratio) loans are designed for real estate investors and generally focus on the property's rental income and its ability to support the mortgage payment rather than qualifying primarily on the borrower's personal income. Requirements vary by lender and program, making DSCR one of several mortgage options worth reviewing for investment property financing.