Lending
The Mortgage Process, Step by Step, from Application to Keys
Every step from application to keys, who does what, and what you'll be asked for along the way.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
What are the steps from application to keys?
- Application. You share your income, assets, debts and the home you're buying.
- Loan Estimate and disclosures. The lender sends your Loan Estimate and the required disclosures.
- Processing. Your documents are gathered and checked, and the appraisal and title work are ordered.
- Appraisal. An appraiser gives the lender an opinion of the home's value.
- Underwriting. The underwriter reviews the file and lists any conditions to clear.
- Clear to close. Every condition is met and the loan is ready for final documents.
- Closing Disclosure. You receive your final numbers at least three business days before closing.
- Signing. You sign the loan documents, usually with a notary through escrow.
- Funding and recording. The lender sends the money, the deed records with the county and the home is yours.
What happens when you apply and get your Loan Estimate?
Once you give a lender the key details about you and the home, it must send a Loan Estimate within three business days, the CFPB says (page last modified August 14, 2024). It shows the estimated rate, monthly payment and closing costs. Every lender uses the same form, so you can line them up side by side.
You'll also get a stack of disclosures to read and sign electronically. Sign them quickly. Some steps can't start until the lender knows you want to move forward. Our page on the Loan Estimate and Closing Disclosure walks through each section.
What happens during processing and the appraisal?
A loan processor gathers what the underwriter will need. That means your pay stubs, bank statements, tax documents, the purchase contract, the title report and your homeowners insurance. Expect a few requests for an updated statement or a missing page. Fast replies keep things on schedule.
The appraiser visits the home and compares it with recent sales nearby. If the value comes in lower than the price, you have choices. You can renegotiate, bring more cash, change the loan or use your contract rights. Because Maggie is a real estate broker as well as a mortgage broker, we look at the contract and the loan together when that happens.
What are underwriting conditions?
The underwriter reads your whole file and decides whether the loan meets the rules. Most approvals come with a list of conditions. These are items to clear before closing. Common ones include:
- A letter explaining a large deposit or a credit inquiry
- An updated pay stub or bank statement
- Proof a gift has been transferred
- Your homeowners insurance details
- A final check that you're still employed
Conditions are normal. They don't mean anything is wrong. Send exactly what's asked, all pages, and ask if a request isn't clear.
What does clear to close mean, and what comes next?
Clear to close means the underwriter has signed off on every condition. The lender then prepares your final loan documents and your Closing Disclosure.
The CFPB says (page last modified September 6, 2024) your lender must give you the Closing Disclosure at least three business days before you close. It shows your final loan terms, monthly payment and closing costs. Compare it with your Loan Estimate and ask about anything that changed.
Before you send any money, call escrow at a phone number you already know is real to confirm the wiring instructions. The CFPB warns that closing scams target buyers in these last days, often with an email that changes the wire details.
How do signing, funding and recording work in California?
In California, a neutral escrow company usually handles the closing. You sign your loan and escrow documents with a notary, often a few days before the closing date. You'll bring or wire your cash to close to escrow.
After signing, the lender reviews the signed documents and sends the loan money to escrow. That's called funding. Escrow and the title company then record the deed and the loan with the county recorder. Once recording is confirmed, the sale is closed and you can get your keys, according to the terms of your contract.
Our escrow and impounds page explains escrow in more detail, and closing costs covers what you'll pay.
How long does the whole process take?
It varies. The loan type, the appraisal, the time of year and how fast documents come in all play a part. Your purchase contract sets the closing date, so we plan the loan schedule around it before you write the offer.
A few things that speed it up: get fully reviewed before you shop, answer requests the same day, keep your finances steady and lock in your homeowners insurance early. Homeowners insurance can take time to line up in some areas, so start that search as soon as you're in contract.
Who does what during your loan?
- You: share documents, review disclosures, keep your finances steady and read your Closing Disclosure.
- Your mortgage broker: compares lenders, structures the loan, explains your options and keeps the file moving.
- The processor: gathers and checks documents and orders the appraisal and title items.
- The underwriter: reviews the file and approves the loan.
- The appraiser: gives the lender an opinion of the home's value.
- Escrow and title: hold the money and documents, handle the signing and record the sale.
- Your real estate agent: handles the contract, inspections, deadlines and negotiations.
At Surroundings, the real estate and loan sides can sit on one team, so nothing gets lost in a handoff. You're always free to bring your own lender or agent.
How do you start your loan?
Fill out the loan options form or call Maggie's cell at (916) 549-3131. We'll review your situation, compare lenders and give you a clear plan with dates. Then read getting preapproved so your first step is the strongest one.
Frequently Asked Questions
When will I get my Loan Estimate?
The CFPB says a lender must send it within three business days of your application. It shows the estimated rate, monthly payment and closing costs on a standard form you can compare.
When do I get my Closing Disclosure?
At least three business days before closing, the CFPB says. Compare it with your Loan Estimate and ask about anything that changed.
What does clear to close mean?
It means the underwriter has signed off on every condition. The lender can prepare final documents and the Closing Disclosure, and you move toward signing.
What is the difference between signing and funding?
Signing is when you sign the loan documents. Funding is when the lender sends the loan money to escrow after reviewing those documents. In California, the sale closes once the deed records with the county.
How do I avoid wire fraud at closing?
Before you send money, call escrow at a phone number you already know is real and confirm the wire instructions. Never trust new instructions that arrive by email, even if the email looks familiar.
Talk to Maggie directly: cell (916) 549-3131 (text or call) · maggie@loveyoursurroundings.coMaggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307
Loans are arranged through Maggie B. Hopkins, NMLS #349517 · Surroundings NMLS #2528307. This is not a commitment to lend. All loans subject to credit approval and property qualification. Equal Housing Lender.
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