Securing a loan to purchase a resale home involves pre-approval, application submission, underwriting, appraisal, and closing. A borrower must first obtain pre-approval from a lender to determine affordability and strengthen offers. Next, submit a mortgage application with financial documents (pay stubs, tax returns, bank statements). The underwriting process verifies income, assets, and creditworthiness, often requiring additional documentation. A home appraisal ensures the property’s value aligns with the loan amount. Once approved, the closing phase finalizes the sale with a signed purchase agreement and loan disbursement.

The process prioritizes risk assessment and compliance. Pre-approval reduces offer competition and accelerates timelines, as 68% of homebuyers with pre-approval secure financing faster (National Association of Realtors, 2023). Underwriting ensures lenders mitigate default risks; loans denied during this phase cost lenders $4,500 on average (Federal Housing Finance Agency, 2022). Appraisals prevent overvaluation, with 15% of loans rejected due to low appraisals (MBA, 2023). Closing verifies legal and financial readiness, with 90% of closings proceeding smoothly when all steps are completed correctly (Fannie Mae, 2023). These stages collectively balance buyer opportunity with lender safety, ensuring sustainable homeownership.