The resale home mortgage loan application process in the United States involves several key steps. First, potential borrowers must obtain pre-approval from a lender, which includes submitting financial documents such as pay stubs, tax returns, and bank statements. Next, the borrower selects a property, makes an offer, and upon acceptance, the lender conducts an underwriting review to assess the borrower’s creditworthiness, property value via appraisal, and loan terms. Conditional approval is then issued, followed by satisfying any remaining requirements like insurance or title searches. Finally, the loan closes after funding, with the borrower receiving the mortgage proceeds.

The process is structured to ensure compliance with federal regulations such as the Truth in Lending Act (TILA) and the Secure and Fair Enforcement Act (SFEA), which mandate transparency and fair lending practices. Data from the Federal Housing Finance Agency (FHFA) shows that 75% of mortgage applications were approved in 2023, with an average processing time of 30–45 days. The median home price of $420,000 (U.S. Census Bureau, 2023) influences loan amounts, typically ranging from $300,000 to $500,000 for single-family homes. Lenders also prioritize credit scores above 620, as borrowers with scores below this threshold face higher denial rates (Equifax, 2023). Underwriting criteria, including debt-to-income ratios (DTI) under 43%, further restrict eligibility. These measures collectively ensure lenders balance risk and accessibility while adhering to regulatory standards.