About home loans

Whether you’re a first-time buyer or just need a refresher, here’s a brief overview of what you can expect when you apply for a home loan.

Step 1:

Speak with a loan officer

Your loan officer is someone you will be working with throughout the homebuying process. They will ask you about your budget and basic financial information, then explain the different loan options available so you can choose the best one for your situation.

Step 2:

Get prequalified

Prequalifying can be an easy way to determine how much you may be able to borrow. You can submit information online. The application takes between 20 and 40 minutes to complete. Get started now

Step 3:

Submit a loan application

After it’s completed, you’ll receive an initial disclosure package containing a Loan Estimate (LE) that shows your estimated monthly payment and closing costs, including origination charges, any applicable mortgage insurance, title insurance, escrow reserves and homeowners insurance. You'll also get a booklet, "Your Home Loan Toolkit, a Step-by-Step Guide," explaining the loan process and costs of obtaining a home loan.

Step 4:

Loan processing

You will need to provide bank statements, pay stubs and other documentation to verify the information you provided on your initial application. We will also check on your credit and obtain an appraisal report on your property.

Step 5:

The commitment letter

If your loan is conditionally approved, you will receive a commitment letter, which sets out many of the key terms of the loan, the length of time for which those terms are offered, and any other items necessary to finalize the loan.

Step 6:

Final approval

Once all items necessary to finalize the loan are received—including, for example, the property appraisal—your loan officer will let you know that you are ready for closing.

Step 7:

Closing

Prior to your closing date, you will receive a Closing Disclosure which summarizes the costs and fees associated with the transaction and the amount of money you need to bring to the closing table.

Know your loans

There's no one loan that works for everyone. Each type of mortgage has its pros and cons and its up to you—with the assistance of your loan officer—to decide which one best meets your needs.

Loan Type Description
FHA Insured by the Federal Housing Administration; allows a down payment as low as 3.5% of purchase price
VA Guaranteed by the Department of Veterans Affairs for past and current military members; requires no down payment
Conventional Not obtained under a government insured or guaranteed program; typically requires minimum down payment of 5% of purchase price
USDA Guaranteed by the Department of Agriculture in eligible areas for those who fall under certain income limits; requires no down payment
Fixed rate Interest rate stays fixed for the life of the loan; regular monthly payments don’t change
Adjustable rate (ARM) Interest rate periodically adjusts with market conditions; regular monthly payments change
Hybrid adjustable rate (Hybrid ARM) Combination of fixed- and adjustable-rate loans; interest rate stays fixed for a predetermined period, then periodically adjusts with market conditions; regular monthly payments change after initial period
High-balance Loan amount meets local Conventional limits, but exceeds the national conforming limit set by the Federal Housing Finance Agency (FHFA)
Jumbo Loan amount exceeds conforming limits set by the FHFA