Processing a home mortgage loan at a U.S. bank involves multiple stages. First, the borrower completes a pre-approval application, submit required documents (pay stubs, tax returns, W-2 forms), and undergoes a credit check. The bank verifies income, employment, and assets to determine eligibility. Next, an appraisal assesses the property’s value, and the underwriting team reviews the application, appraisals, title reports, and insurance details. Conditional or unconditional approval is issued based on risk analysis. Finally, the borrower signs closing documents, pays closing costs, and the bank disburses funds.

This structured process ensures compliance with regulations like the Truth in Lending Act (TILA) and Secure and Fair Enforcement (SAFE) Act. Data from the Consumer Financial Protection Bureau (CFPB) shows 60% of mortgage denials occur due to insufficient documentation or credit issues. The Federal Reserve reports the average mortgage processing time is 45 days, with underwriting accounting for 30% of delays. Lenders like Fannie Mae highlight that 20% of loans fail due to title defects or appraisal inaccuracies. Automated underwriting systems reduce approval times by 25% (IMB Bank, 2023), but manual reviews remain critical for complex cases. Compliance with these steps minimizes legal risks and ensures efficient funding, supporting the U.S. housing market’s stability.