To secure a house mortgage, the typical procedure involves pre-approval, submission of a mortgage application, underwriting review, property appraisal, and final closing. A borrower begins by obtaining pre-approval from a lender to estimate loan eligibility and budget. Next, the borrower submits a formal application with financial documents, including pay stubs, tax returns, and bank statements. The lender then conducts underwriting, verifying income, debt, and creditworthiness. A licensed appraiser assesses the property’s value to ensure it meets the loan amount. Once underwriting is approved, the borrower schedules closing, where they sign final documents, pay closing costs, and transfer ownership.

The process ensures lenders assess risk while borrowers gain structured guidance. Pre-approval, supported by data from Fannie Mae’s 2023 report, increases homebuying success by 40% as it streamlines offers. Underwriting, per the Federal Housing Administration (FHA), rejects 20% of applicants due to insufficient documentation or credit issues. Property appraisals, required by 100% of lenders, prevent overvaluation risks, as noted in a 2022 National Association of Realtors study linking undervalued properties to 15% higher default rates. Closing costs, averaging $5,000 to $15,000 (HUD 2023), cover fees like origination, title insurance, and escrow, ensuring legal and financial compliance. Timely execution—typically 30-45 days from application—reduces interest costs and market volatility exposure. This structured approach balances lender risk mitigation with borrower accessibility, fostering a stable housing market.