1. The steps

There are six general steps you will need to go through during a mortgage approval process.

The first step is the pre-approval process, where the lender reviews whether they want to lend to you. The second entails you locating a home and offering a price for it. The third step is where you apply for a loan to pay for the house you have located, collating all the necessary documents in the process. The fourth is the processing process, where the loaner takes all your documents and processes them for approval. The fifth step is mortgage underwriting, where the underwriter gives the final say on the application's approval or denial. The sixth and final step is the closing, where you finalize the deal with the mortgaged finally approved.

2. The credit score

One of the most critical aspects of the mortgage approval process would be your credit score. It is what lenders look at to see what kind of risk they put themselves in when loaning to other people.

That said, if you do not have much credit score history, or are dealing with a less-than-ideal credit score, then your chances of getting a good loan become slimmer. Note that there are still mortgages out there that you can still get even with bad scores, albeit with higher interest rates or other disadvantages.

3. The property

The property you are trying to buy with the mortgage will also affect the mortgage approval process. For example, some homes will come with requirements and restrictions, such as the need for mortgage insurance, which will affect how you can buy the house. For that reason, you must understand the details of the property you are interested in buying to ensure that you are pre-approved before making any offers.

4. The program

When it comes to the mortgage program itself, there are many that you can pick from. For example, some will have lower down payment options with longer terms, others with full 100% financing, while others only a portion of the home's value. It is your task to figure out precisely what you want to achieve to find an appropriate mortgage that suits your needs.

Buying a Home on O’ahu with HI Velocity Mortgage

We hope that we have cleared out some of the questions you may have had about the mortgage approval process. If you are still unsure as to how a mortgage works or how you can apply for one, do not fret! There are services out there that can determine which loans will work for you—such as the professional services we offer here at HI Velocity Mortgage!

HI Velocity Mortgage is a mortgage broker that helps clients undergo the process of buying and lending homes in a smooth and quick manner. If you are looking for a mortgage broker at Ewa Beach to help you secure a mortgage, contact us today at (808) 727-1055.