The Loan Processs, Step-By-Step

Step 1: Pre-qualification

This preliminary screening is to make

sure your loan request fits within the

lender’s most basic lending parameters

based on property type, loan amount,

credit score, and purpose of the loan.

Step 2: Pre-approval

Some lenders work with you to establish

appropriate terms based solely on a

loan application. In other words, these

direct lenders do not require income and

asset documentation upfront, and can

still provide loan terms as outlined in a

conditional pre-approval letter.

Step 3: Underwriting

Underwriting further evaluates the loan

and verifies the application. The lender

will order the property appraisal, title

insurance, and address environmental

and other due diligence matters.

Step 4: Closing and funding

Closing documents are signed, outstanding

fees are collected, and funds are disbursed