Pre-Qualification
Pre-qualification is the first step after initial contact is made. The lender gathers information about the income and debts of the borrower and makes a financial determination about how much house the borrower may be able to afford. Different loan programs may lead to different values, depending on whether you are qualified for them, so be sure to get a pre-qualification for each type of program you are suited for.

Application
The application is actually the beginning of the loan process. The borrower, completes a mortgage application with the loan officer and supplies all of the required documentation for processing. Various fees and down payments are discussed at this time. The borrower will receive a Good Faith Estimate (GFE) and a Truth-In-Lending statement (TIL) within three days that itemizes the rates and associated costs for obtaining the loan.

Processing
The processor reviews the credit reports and verifies the borrower's debts, payment histories, income and assets. If there are unacceptable late payments, collections for judgment, etc., a written explanation is required from the borrower. The processor also reviews the appraisal and checks for property issues that may require further discernment. The processor puts together a package that will be underwritten by the lender.

Underwriting
The underwriter is responsible for determining whether the combined package submitted is an acceptable loan. If more information is needed, the borrower is contacted by the processor to supply more documentation.

Closing
This will take place at the title company. The escrow officer will prepare the closing documents, insure that all paperwork is signed appropriately, notarize your signature and disperse the funds according to the lenders instruction. They are a third unbiased party that neither represents the seller, buyer, real estate agent, broker or lender. They will record the note and provide you with a copy of all the documents you signed at the closing before you leave.