steps of the home loan process

6 steps of the home loan process every buyer needs to know

Bethany RamosFirst-Time Homebuyer, Getting Prequalified, Home Buying

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Congratulations! You’ve made one of life’s biggest decisions by choosing to buy a house. This is the most important step, and it’s just the first. What happens next might feel like a whirlwind of data and deadlines. But your Cornerstone team is right here to offer guidance and answers to your questions. First things first. Understanding the steps of the home loan process can make the daunting task of buying a house that much easier.

Want to make home buying truly easy? Use our Borrower Portal to manage your home loan remotely via our free LoanFly app.

3 things that need to happen before you get approved for a loan

steps of the home loan process

Here’s what you can expect between deciding to buy and moving into your new home:

1. The home-buying process officially starts with your loan application. Using the information you provide, we can review your credit history, and help you choose the right loan. Whether it’s a conventional fixed-rate loan, an adjustable-rate mortgage (ARM), or one backed by any number of government programs such as Veterans Affairs (VA), Federal Housing Administration (FHA), or United States Department of Agriculture (USDA), we’ll make sure it fits your unique needs.

2. One of the first forms you’ll complete is a prequalification form, either in-person at one of our Cornerstone offices, or online if it’s more convenient for you. The result of prequalification is a dollar figure based on your income and financial history that’s like a credit line for your home purchase. This allows you to know how expensive a house you can responsibly afford, even before you start shopping. Prequalification usually expires after 90 days. So, you’ll need to contact your loan officer if it’s going to take longer than that to find and purchase your new home.

If you want to dig deeper, here’s exactly what you can expect from us when you buy a house.

3. Once you find the house you’d like to buy, you’ll submit your purchase contract to our team. After the contract is accepted, you’ll sign and return all the necessary disclosures and processing documentation. Next, we’ll order an appraisal and title for the property.

3 things that need to happen before closing day

steps of the home loan process

1. Cornerstone’s underwriting department takes over from here, double-checking all materials gathered and completed to this point. If the application submission is complete and a loan can be approved, underwriting sends all necessary loan materials to the title company. We’ll contact you for any information that might be missing or is still needed. This process is important to you and to us. We’ll keep you updated along the way to make it as smooth and streamlined as possible!

2. After all these other steps are completed, we’re ready to schedule your closing date. Closing is when the funds for your loan actually purchase the house, and the title to the property is transferred. Our #1 goal at Cornerstone is to meet our closing dates. On-time, every time!

3. Finally, the big day actually arrives. Your loan is funded on the date of closing. You become a homeowner. Whether it’s your first or fifth (or even fifteenth) time buying a house, there’s something special about the moment you’re handed the keys, and the property’s yours!

Why not start the prequalification process online? You can find out how much house you can afford before you start shopping.

If you’re ready to get started, contact us today. Or, if your prequalification and loan application is already underway, thanks for choosing and trusting Cornerstone as your home lender. Our in-house processing, underwriting, and funding resources, combined with our commitment to on-time closings and superior customer service, help deliver a truly satisfying home-financing experience.

For educational purposes only. Please contact your qualified professional for specific guidance.

Sources are deemed reliable but not guaranteed.

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