What actually happens after you decide to get a mortgage?
From getting financially ready to recording and getting the keys, this is the full purchase-mortgage path — including the parts that often confuse borrowers: preapproval, disclosures, AUS, appraisal, underwriting, conditions and closing.
Prepare before you shop
Review credit, income, employment, assets, debts, budget and likely cash-to-close. The goal is not simply the largest approval — it is a payment and cash requirement that fit your life.
- Avoid opening or financing new debt without discussing it with your loan professional.
- Know the difference between down payment and total cash to close.
- Explore loan programs and DPA before assuming you need 20% down.
Preapproval and loan strategy
A lender reviews the financial picture, runs the applicable underwriting path, and identifies a loan structure. A preapproval is not a final approval; property, documentation and underwriting conditions still matter.
- Provide accurate income, asset and debt information.
- Compare the estimated total housing payment, not only principal and interest.
- Ask which assumptions could change your approval: taxes, insurance, HOA, appraisal, rate, debts or documentation.
Shop, make an offer and enter contract
Once an offer is accepted, the real property becomes part of the mortgage decision. Contract price, closing date, seller credits, property type and condition can all affect financing.
- Send the fully executed contract to the lender promptly.
- Coordinate inspections separately from the lender's appraisal.
- Confirm earnest-money documentation and the source of funds.
Formal application, Loan Estimate and intent to proceed
For mortgages covered by the federal Loan Estimate rules, the lender generally provides a Loan Estimate within three business days after receiving the six pieces of information that constitute an application. Review loan terms, estimated payment, closing costs and cash to close. A Loan Estimate is not the same thing as a final approval.
Processing: documents, title, insurance and appraisal
The loan file is assembled and verified. Depending on the transaction, this can include income and employment verification, bank statements, title work, homeowners insurance, appraisal, condo/project documents and other property or borrower documentation.
- Respond quickly, but ask what a request is intended to document if it is unclear.
- Do not move unexplained money between accounts or make major financial changes without checking first.
- An appraisal is a valuation for the lending process; it is not a home inspection.
Underwriting and conditions
An underwriter evaluates whether the documented borrower, property and loan satisfy the applicable program and lender requirements. “Conditional approval” usually means the file is approvable if listed conditions are satisfied.
- Conditions are normal; they are not automatically a sign something is wrong.
- AUS findings can guide documentation, but AUS is not the same as final lender approval.
- New debt, job changes, credit changes or documentation inconsistencies can require re-underwriting.
Final approval and clear to close
After underwriting conditions are satisfied, the lender can move toward final approval and closing. Final employment, credit, asset or other verifications may still occur depending on the loan and lender.
- Keep finances stable through closing.
- Confirm final cash-to-close and acceptable transfer method directly with trusted parties.
- Be alert for wire-fraud attempts and independently verify wiring instructions.
Closing Disclosure, signing, funding and recording
For covered transactions, the Closing Disclosure must be received at least three business days before closing. Compare it with the Loan Estimate and resolve unexpected changes. At closing you sign the note and security instrument/deed of trust or mortgage, provide required funds, and the settlement process completes. Exact funding, recording and key-release practices vary by state and transaction.
CFPB Closing Disclosure explainer → CFPB closing checklist →
The part most borrowers miss
Mortgage approval is not one event. It is a chain: initial strategy → application → disclosures → documentation → property review → underwriting → conditions → final approval → closing. A change anywhere in that chain can affect what comes next.