To handle mortgage processing when buying a home, follow these steps: Secure pre-approval from a lender to determine borrowing capacity, select a mortgage type (e.g., fixed-rate or adjustable-rate), gather required documents (pay stubs, tax returns, bank statements), submit the application, undergo underwriting and appraisal, and close the loan with final inspections and signing.

Pre-approval is critical as it streamlines the buying process and increases seller confidence, with 60% of sellers prioritizing pre-approved buyers (National Association of Realtors, 2023). Choosing the right lender impacts interest rates; Freddie Mac data shows a 0.5% rate difference between top and bottom lenders, saving $100 monthly on a $300,000 loan. Document accuracy reduces underwriting delays—Urban Institute research indicates 30% of loan denials stem from incomplete paperwork. Appraisals prevent post-closing disputes, with Fannie Mae reporting 15% of home sales collapsing due to appraisal issues. Closing timelines average 30-45 days, per Federal Reserve data, though delays can occur if title issues or inspections uncover problems. These steps ensure compliance with regulations like the Truth in Lending Act (TILA) and smooth transaction completion.