This is the final blog in a series on financing your home. Before we get to the final step, let's review the first 5. 

Step 1: How Much Can You Afford?

Step 2: Selecting a Lender

Step 3: Selecting a Loan

Step 4: Shop. Compare. Negotiate

Step 5: Loan Pre-Qualification & Pre Approval

And Finally, Step 6: Loan Approval

Processing and Underwriting - Expect a time delay in getting final loan
Avoid the most common problems with these worksheets:
Mortgage Application Checklist
Mortgage Loan Flow Sheet

Neither pre-qualification nor pre-approval nor a means you are guaranteed a mortgage. In order to get final loan approval and money delivered to the title company at closing, the loan must be processed and then be underwritten.

The processing department must order appraisals, title work, and verify employment and credit report. The underwriter must make sure that your loan meets the requirements for the particular loan program you are using. Problems with these final steps can often be traced to buyers not having submitted the necessary financial items and paperwork in a timely manner, and the fact that Processing and Underwriting are separate departments within the lending institution which can create a bureaucratic delay in completing this process.

For more information on Financing Your Home, visit our Buying a Home Website.