Mortgage Basics: Information for First Time Home Buyers

How does a home loan work?

Getting a home loan is a step-by-step process. First, a mortgage lender will pre-approve you for a loan based on a limited review of your financial situation. Next, after you and the lender settle on the type and rate of the loan, you'll complete a full application. Then the mortgage lender will process the application. The final step is to "close" the loan. This is when you and the lender sign all documents to finalize the loan.