After receiving mortgage approval, borrowers must finalize loan terms, complete underwriting requirements, and prepare for closing. Key steps include reviewing the final loan estimate, confirming closing dates, and securing title insurance. Additionally, borrowers should avoid large financial changes, such as taking on new debt or shifting savings, to prevent underwriting rejections.

Finalizing loan terms ensures alignment with the initial approval, with adjustments to interest rates, loan amounts, or amortization schedules. The underwriting process verifies income, assets, and employment stability again, often requiring updated documents like pay stubs or bank statements. Closing preparation involves paying closing costs—typically 2-5% of the loan amount—and arranging for a home inspection. Data from the U.S. Department of Housing and Urban Development (HUD) shows that 20% of mortgage applications fail post-approval due to incomplete documentation or financial changes. For example, a 2023 report by the Mortgage Bankers Association found that 12% of loans were denied after approval due to updated credit score drops or employment gaps. Title insurance, averaging $1,000-$2,000 per transaction (National Association of Insurance Commissioners), safeguards against property title disputes. Home inspections, performed by 86% of buyers (National Association of Realtors), reveal 3-5 critical issues per inspection, often prompting renegotiation. Proactive communication with lenders and real estate agents mitigates delays, as 30% of closings face at least one last-minute complication (Federal Housing Finance Agency). Adhering to these steps reduces risks and ensures a smooth transition to homeownership.