Quick steps to simplify the mortgage process

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Step 1: Prequalification & application

1) Look at your budget
Ask yourself what you can comfortably afford while still meeting your financial obligations and goals.

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2) Meet with your lender
Work with your lender to get a prequalification letter that you can share with your real estate professional when you start shopping for a home.

3) Submit your application
Submit the application fee and supporting documentation to get the ball rolling.

Learn more about the Bank of America Digital Mortgage Experience™ where you can streamline the mortgage application process.

Thinking ahead
Build up your credit well in advance of applying for a mortgage. Lenders like to see no delinquencies within the last two years.

Step 2: Conditional approval

1) Provide documentation
You’ll have to confirm your employment status, income level, assets, debt info and other information to be conditionally approved.

2) Check your inbox
Watch for a conditional approval letter to ensure that your mortgage amount and savings will cover the purchase price and closing costs. Also, clear any conditions you must meet for approval.

3) Look at the price tag
Check with your lender to make sure the appraised value of the house you want to buy is equal to or greater than the asking price. The bank will not loan you more than the house is worth.

Preparing for paperwork
Don’t make any major purchases or open new lines of credit for a few months before and during the application process.

Step 3: Final approval

1) Set realistic expectations
Because of the level of detail involved, it takes time for the underwriter to examine all the necessary documentation before approving your application.

2) Stay connected
Be prepared to get a few phone calls from your lender, as more info might be needed.

3) Check your inbox
Keep an eye out for your final approval letter—you’re approved! Review your closing disclosure document thoroughly for accuracy to avoid surprises during closing.

Avoiding delays
Acquiring new debt in the months prior to or during the application process could result in your loan being delayed or canceled.

Step 4: Closing

1) Sign your documents
Sign all your final loan documents.

2) Transfer down payment
It’s time to provide certified funds for any remaining down payment balance or closing costs.

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3) Pat yourself on the back
Congratulations, you did it—you’re officially a homeowner!

Setting a date to close
The time it takes to close can vary. Have a clear conversation with your lender to set realistic expectations for a comfortable closing date.

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The material provided on this website is for informational use only and is not intended for financial, tax or investment advice. Bank of America and/or its affiliates, and Khan Academy, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional and tax advisor when making decisions regarding your financial situation.

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