The Loan Process Step-By-Step

  1. Select a Mortgage Professional Before you take the big step of buying a home, you will have to decide what type of mortgage is best for you. You’ll want the assistance of someone who knows the business, looks at your overall picture and is committed to providing you with a competitively-priced loan.

  2. Get Pre-Qualified* and find out how much we can lend you for your home An analysis of your income and debts will show how much we can lend you to purchase a house. And after we pre-qualify you, we’ll present you with a pre-qualification letter. We’ll also show you valuable ways to increase your buying power.

  3. Choose the mortgage that’s best for you When deciding on a mortgage, many variables come into play that, if not considered, may cost you thousands of dollars. This is why it’s best to analyze your financial situation in order to find a loan that fits your short- and long-term goals.

  4. Apply for the loan The sooner you provide all the necessary information needed to process your loan, the sooner you may be able to close on your new home. You can apply online 24 hours at, or by calling your loan officer.

  5. Close the loan The final step in the process is closing the transaction. Documents must be signed, a down payment and various fees and costs will be due, and the title must be transferred. Once the sale is closed, the house and mortgage are yours!

Buying Your Home Step-By-Step

From the sale to closing, here is how we represent you step-by-step and help you move smoothly through the home buying process.

  1. Loan Officer
    • Loan Application
    • Credit Report
    • Buyer Approval Certificate

  2. Real Estate Agent
    • Select Home
    • Prepare Contract
    • Professional Property Inspection

  3. Processor
    • Title
    • Appraisal
    • Set Up Escrow
    • Flood Determination
    • Employment Verification
    • Deposit Verification

  4. Underwriter
    • Loan Conditions
    • Verifies that loan meets lending and regulatory requirements
    • Conditional Approval

  5. Processor
    • Clear Conditions
    • Clear Title
    • Request Closing Documents

  6. Escrow Officer or Closer
    • Order Payoff Statements
    • Prepare Closing Statements
    • Set Up Appointments with Parties to Execute Documents (Signing)
    • Record Deeds of Trust
    • Close Purchase


    Appraisal – A professional estimate and opinion of the value of real property based on the analysis of facts derived from comparisons and market conditions.
    Loan Conditions – Loan approvals are conditional and subject to “conditions” being met before the loan is fully approved and ready to be closed. These conditional items need to be collected, corrected or completed prior to loan closing.
    Escrow – Independent third party whose duties include: following the instructions given in the purchase instructions; handling the funds and/or documents in accordance with provided instructions; paying all bills as authorized; closing the escrow only when all terms are completed in accordance with provided instructions and provide accounting for same.
    Title Insurance – An insurance policy written to protect the lender against loss if title is defective. A separate owners’ policy can be purchased if you want to protect yourself from claims by others against your new home.
    Title Report – A preliminary report disclosing condition of title on real property issued prior to the final title Insurance Policy.
    Payoff Statement – Letter stating requirements and amounts necessary to clear underlying loan.
    Home Inspection – A professional inspection that evaluates the structural and mechanical condition of a property.
    Underwriting – Review of the file to determine if documentation and borrower details meet the guideline requirements for the loan program.

Which Loans Are Best for You?

A qualified lender can determine which type of loan best fits your situation. Here is some information of various loan types and loan programs.

Fixed Loans

  • Different terms available
  • Fixed monthly payments over the life of the loan
  • Lowest risk
  • Your principal and interest payments will not change for the life of the loan
  • Shorter fixed terms would build equity quicker and may have a lower interest rate

Adjustable Rates (ARM) 

  • Also reffered to as 3/1, 5/1. 7/1 or 10/1 ARMs
  • Starts out at a lower interest rate, then may adjust after 1, 3, 5, 7 or 10 years FHA
  • Available for veterans who have served in the military, those on active duty, or for qualifying spouses of veterans
  • Lower interest rates and down payment requirements
  • VA loans may require a funding fee that can be financed into the loan. This fee is waived for disabled veterans
  • No or low down payment options available †

USDA Rural Housing

  • Lower interest rates
  • USDA Rural Housing loans accept lower credit scores and little to no assets
  • Insured by the USDA
  • Zero down loans available and the guarantee fee may be financed

Interest Only **

  • Lower monthly payments, but often a higher interest rate than a fixed loan
  • Does not pay down the principal

Jumbo Financing **

  • Higher loan limits available for financing of homes typically located in high-cost areas
  • Both fixed- and adjustable-rate Jumbo loans are available

**Home financing option(s) are not guaranteed to be offered by 1st Security Bank, and may be brokered to another lender.

† A down payment is required if the borrower does not have full VA entitlement, or if the loan amount is greater than $417,000.

Click here for the Loan Application Borrower ChecklistHelpful tips for New Homebuyers, Mortgage Final Steps, The Benefits of Owning vs Renting and to download a PDF of this Mortgage Process listed above.

Angelina Douglas





Buyers Information

Whether it’s your first home, your forever home or somewhere in between. This section offers insights to help you understand the process.

Sellers Information

What you should know about selling your home / property before putting it on the market… no matter if you’re a first time seller or an experienced seller.

Community Area Info

When you work with REID Real Estate – it’s like you are working with family.

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