Getting pre-approved to buy a house is a major milestone – but it's not the final step. Think of pre-approval as your green light to begin shopping. Once you've found the right home, your lender shifts from evaluating you as a borrower to evaluating both you and the property before issuing final approval.

How does pre-approval change your home search?

A pre-approval gives you a realistic budget and shows sellers you're a qualified buyer. Since much of your financial information has already been reviewed, you'll be ready to act quickly when you find the right home.

As you shop, look beyond the listing price. Property taxes, homeowners insurance, HOA fees, and ongoing maintenance all affect what a home truly costs to own.

When you're ready, your real estate agent will help you submit an offer. If the seller accepts, the signed purchase agreement kicks off the next phase of your mortgage.

Why is a home inspection important?

A home inspection isn't typically required by your lender, but it's one of the smartest steps you can take as a buyer.

A licensed inspector evaluates the home's major systems – including the roof, foundation, plumbing, electrical, and HVAC – to identify issues that may not be obvious during a showing.

The inspection helps you:

• Better understand the home's condition
• Plan for future repairs or maintenance
• Negotiate repairs or seller concessions when appropriate
• Make a more informed purchasing decision

Remember, the inspection is designed to protect you as the buyer. It's separate from the lender's approval process.

What does the appraisal determine?

Your lender orders an appraisal to confirm that the home's market value supports the loan amount. A licensed appraiser evaluates the property's condition, location, features, and recent comparable sales to estimate its value.

If the appraisal supports the purchase price, your loan typically moves forward. If it comes in lower, your lender will discuss the available options, which may include renegotiating the purchase price or adjusting the financing.

The appraisal helps protect both you and your lender by ensuring the home's value aligns with the loan.

What happens during underwriting?

Underwriting is the lender's final review before issuing loan approval.

During this stage, an underwriter confirms that your financial information is still accurate, verifies the property's value, and ensures the loan meets all lending guidelines.

That review may include:

• Verifying your income and employment
• Reviewing bank statements and assets
• Confirming your credit profile
• Evaluating the appraisal and title work
• Reviewing your purchase agreement

It's common for underwriters to request additional documentation. These requests are a normal part of the process, so responding promptly can help keep your closing on schedule.

What should you expect before closing?

Once your loan receives final approval, you're almost there.

Prior to signing the paperwork, you'll review your closing disclosure, which outlines your loan terms, interest rate, monthly payment, and estimated closing costs. You'll also finalize your homeowner's insurance, complete one last walkthrough of the property, and prepare any funds needed for closing.

On closing day, you'll sign the final paperwork, complete the transaction, and receive the keys to your new home.

Ready for the next step?

Every step between pre-approval and closing is designed to protect both you and your investment. While the process may seem complex, your mortgage team is there to answer questions and help keep everything moving forward.

If you're ready to buy a home or have questions about the mortgage process, we're here to help. Call our Home Loan Team at 888-334-5120 to learn more about our mortgage options.

Frequently asked questions

Does pre-approval guarantee my mortgage will be approved?

No. Pre-approval is based on an initial review of your finances. Your loan must still complete underwriting and receive final approval after a property is selected.

Why do I need both an inspection and an appraisal?

An inspection evaluates the home's condition for your benefit, while an appraisal determines the home's market value for the lender.

Can I make large purchases after I'm pre-approved?

It's usually best to wait until after closing. Taking on new debt or making significant financial changes could affect your final loan approval.

Common mistakes to avoid after mortgage pre-approval include:

• Opening new credit cards
• Financing a car
• Missing payments
• Changing jobs without consulting your lender
• Making large, unexplained bank deposits
• Draining savings accounts

Who should I contact if I have questions?

Your Mortgage Loan Originator (MLO) is your best resource. Staying in touch throughout the process can help make your homebuying experience smoother from pre-approval to closing.