Step 8: Apply for Official Mortgage Loan

After you have a signed purchase contract and have completed the inspections and final negotiations, you apply for the mortgage loan by completing a standard mortgage loan application. The form includes questions about your income, assets, debts and credit, as well as the property you wish to purchase.

Spend time shopping for your mortgage loan.  Next to finding a house, this is the most important decision you will make in your home purchase. Given that there are varying costs, make sure to explore different loan types that are available to you. The goal is to get the best rate and terms, but you also want to find a lender who will take the time to understand your situation. Remember, you don’t have to use a lender just because they provide you with a pre-approval letter.

Once you’ve applied with a lender, they will be required to provide you with an official Loan Estimate within 3 days of your application. The Loan Estimate provides you with important information, including the estimated interest rate, monthly payment, and total closing costs for the loan. The Loan Estimate also gives you information about the estimated costs of taxes and insurance, and how the interest rate and payments may change in the future.

Interested in our down payment assistance programs? Work with a TSAHC-approved lender.

Next Steps:

  • Loan Processing: Once the loan application is completed, it is assigned to a loan processor. The processor completes your loan package by ordering your credit report and an appraisal of the property, verifying your employment, rent and bank account balances.
  • Underwriting: An underwriter reviews your complete loan application package and decides whether to approve it according to the lender’s loan program guidelines.
  • Approval: If you are approved, your lender will send you a commitment letter. The commitment letter is a formal loan offer that states the amount and terms of the loan. You will be given a set amount of time to accept the offer and close the loan by signing this letter.

See Step 9

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