Mortgage Process: Simple Step-by-Step Guide
The Mortgage Process does not have to be confusing. This guide explains the Mortgage Process in clear steps, from your first chat with us to getting your keys. Some parts can change by loan type and by your situation. For example, a VA loan can look different from a Conventional loan, and manual underwriting can ask for more documents than an automated approval. The JD.Mortgage team at Paramount Residential Mortgage Group, Inc. is here to help you at every step. Have a quick question?
Mortgage Process Overview
Here is the big picture: intake and goals → pre-qualification or pre-approval → shop for a home and plan your offer → under contract and disclosures → processing and underwriting → appraisal, title, and insurance → clear to close → closing day. We also send updates every Tuesday and Friday so you always know where things stand. Back to top
Your Home Loan Team (Who Does What)
Loan Officer: Think of us as your guide. We learn your goals, show loan options, explain costs, and help you pick the best path. We also help plan rate locks and monthly payment choices. See loan options
Realtor & Transaction Coordinator (TC): Your Realtor leads your home search and helps you write the offer. The TC supports the Realtor. The TC tracks the contract dates and deadlines, shares updates, and keeps documents on time. Together they manage the contract while we manage the loan. Have a question for your team?
Loan Processor: This person organizes your file. After the Loan Officer sets up your file and sends disclosures, the Processor becomes your day-to-day helper. The Processor is your main contact for “conditions” and documents. The Loan Officer stays your main contact for big items like pricing, lock strategy, or contract changes. Back to top
Underwriter: This person checks the rules. They make sure your loan meets program guidelines. For manual underwriting, a person reviews your file in detail. For automated approvals, a computer system gives us a list of what is needed. Ask about approvals
Step 1: Application & Buyer Intake
We start with a simple intake. We ask about your goals, income, savings, housing history, and any special items like self-employment, military service, gift funds, or recent credit issues. We tell you which documents to gather so you do not have to guess. Get your checklist
Step 2: Pre-Qualification
While our team combines Pre-qualification and Pre-Approval into one step, this is a quick estimate based on the info you tell us. It helps you learn a basic price range, but it is not strong enough for most offers. Back to top
Step 3: Pre-Approval
Pre-approval is stronger. We pull credit and review key documents. This shows sellers you are serious and helps your agent write a solid offer. It still needs an underwriter review and a property review later. Check sample payments
Step 4: Conditional Approval
After the underwriter reviews your file, you may get a “conditional approval.” This means you are on track. You just need to provide a few more items. These items are called “conditions.” We help you clear them fast. Ask what to expect
Step 5: Clear to Close
When all conditions are cleared, you get “clear to close.” Your final papers can be prepared. You are almost done! Back to top
Manual Underwriting vs. Automated Approval (AUS)
Automated approval (AUS): A computer system checks your loan and gives us a list of what is needed. This can be fast. Back to top
Manual underwriting: A real person reviews your loan by hand. This can help when a computer program says no, but you still make sense to approve. This generally requires extra documents, like more bank statements or a letter that explains a past issue. We work many manual underwrites, especially for VA loans. See VA with no minimum score
What Documents You May Need
Every loan is a little different. Most buyers will need: a photo ID, recent pay stubs, W-2s or 1099s, two years of tax returns (if needed), two months of bank statements, and a history of rent or mortgage. If you are self-employed, you may need business tax returns and a year-to-date profit and loss. VA loans need a Certificate of Eligibility. FHA and USDA may need extra checks. Non-QM loans (like bank statement or DSCR) use different rules. We will give you a custom list so you know exactly what to upload. See documentation by loan type
Plan Your Payment Before You Make an Offer
Before you write an offer, we will review your possible payment and cash to close. We can look at choices like a temporary buydown, different down payment amounts, or using extra cash to pay down other debt. The goal is a plan that fits your budget today and long term. Run quick numbers
Writing the Offer
When you find the right home, we work with your agent to help with the appropriate offer strategy. We can make a custom letter, show payment options, and talk about seller credits or buydowns. Your Realtor and TC manage the contract dates and deadlines while we keep your loan on schedule. Need a custom letter?
Under Contract: What Happens Next
After your offer is accepted, we send disclosures and may lock your rate based on your plan. After disclosures, your file is handed to the Processor, who is your main helper for documents and conditions. We order needed services like title and (if needed) the appraisal. You will get updates every Tuesday and Friday so you, your agent, and the seller’s side all know the status. Back to top
Appraisal: Do I Always Need One?
Not always. Some loans get an appraisal waiver. If an appraisal is needed, we order it through the proper system. If the appraiser asks for repairs or a re-check, we help you plan the next steps. If value comes in low, we review your options with you and your agent. Ask about waivers
Insurance: Quotes and Binder
You can shop home insurance any time, but we encourage doing this right away. Before closing, we need an insurance binder that shows the right coverage and the correct start date. In some areas, you may also need flood or wind/hail coverage. Your agent or our team can help you compare. Get insurance guidance
Title Work and the Closing Disclosure (Preliminary CD & Final Numbers)
Title work helps make sure you get clear ownership. We also handle the Closing Disclosure (CD). We always send a preliminary CD to you and to the title company or closing attorney. This early CD is not final. It is our first snapshot of lender figures so title can share their snapshot back.
This early step helps prevent last-minute delays. The law says you must get a CD at least three business days before you sign (the TRID rule). By sending a preliminary CD early, we start balancing sooner and help keep the three-day timing on track. If numbers change, we send an updated CD. Back to top
Earnest Money, Cash to Close, and Wire Safety
Earnest money is usually due soon after you go under contract. Cash to close is due before or at signing, depending on local rules. Always call the title company at a known phone number to confirm wire instructions. Never trust wiring details sent only by email. We will never email wire instructions or ask for gift cards. Verify steps with us
Buyer Conditions vs. Property Conditions
Buyer conditions are items we need from you, like an updated pay stub, an explanation letter, or proof of where your funds came from. Property conditions are items about the home, like repair proof, a final appraisal note, or updated title work. Clearing both types leads to clear to close. Back to top
Closing Day
On closing day, bring your ID, arrive on time, and sign your papers. Some areas allow e-sign or hybrid signings. Once the loan funds and the deal records (where required), you get your keys as your contract states. See full timeline
After Closing
We will share details about your first payment date, where to pay, and how your escrow works. If your loan servicing changes, you will get a clear notice. Keep your closing package in a safe place, and update your insurance if things change. We are here for future plans like a remodel, a HELOC, or a refinance when it makes sense. Reach out anytime
Important Notes About Differences
The Mortgage Process can change based on loan program, property type (house, condo, multi-unit), how you plan to live in the home (primary, second home, or investment), and your state’s rules. Manual underwriting and special income types may ask for extra steps. Our job is to explain each step in clear terms so you always know what to do next. Explore your options
Loan Programs We Offer
When you want to learn more, we support many programs: VA, FHA, USDA, Down Payment Assistance (DPA), Conventional, Jumbo, Non-QM (including DSCR, Bank Statement, and ITIN), HELOCs, Closed-End Seconds, Reverse, and Construction. We lend in 49 states (not NY). See all loan options
Helpful Links
Use these pages anytime: Main, Loan Options, Conventional, FHA, Purchase, Jumbo, Calculator, Mortgage Process, VA (No Min Credit Score), Refinance, USDA, Construction Loans, Contact, HELOC, Non-QM, Second Mortgage. Back to top