Mortgage Process: Mortgage Steps for Buying a New Home

There are several major distinct steps in the real estate purchase process, and several relate to the mortgage. It may be confusing for both first time and repeat home buyers. This article offers important information on mortgage steps for buying your new Gray Point Home and covers what you may want to know prior to starting the process.

Mortgage Steps for Buying a New Home


A pre-approval is an introductory review of your finances and credit score to estimate what you might obtain for a loan. It verifies that you meet the primary requirements for financing. Pre-approvals do not certify that you will ultimately be approved for a loan, but is a natural initial step in the mortgage process. Your Gray Point Homes Sales Associate will assist you in getting your preapproval from our preferred lender.

Applying for a Mortgage

A formal application is submitted typically after you have an agreement to purchase a property. You may be asked for more personal information. The specifics on the home are also provided to the lender for review. They will require a copy of the Purchase agreement as well. Your contract will usually specify that you complete an application within a specified period of time.

Home Appraisal

An appraisal is mandated by the mortgage company to determine the exact market value of the real estate. Appraisers will evaluate recent sales and compare them to the one that you are buying. An exact dollar amount is provided. Basically, the value of the home must justify the mortgage amount.

Commitment Letter

After your personal facts and the details on the home are reviewed, the mortgage company prepares a letter of commitment. This confirms that no significant problems have been identified and that the lender is somewhat sure that the loan will receive a clear to close. There may be certain conditions noted in the letter such as an employment verification and last minute credit check. It is therefore critical not to complete costly purchases or alter your financial condition even after a letter is provided as it may result in a fall through.

Clearance to Close

A clear to close is usually the ending approval for financing. It indicates that all requirements have been met and that the lender will submit the file to the closing attorney. This can occur merely days before the planned settlement date.


The closing involves signing of documentation and filing of documents at the Registry of Deed. Be sure to bring acceptable I.D. and certified funds for any funds you are paying. Personal checks or cash are ordinarily not acceptable. Your closing coordinator will give you detailed instructions.

A Few Additional Tips

Deadlines are a critical facet of any real estate transaction, so make sure that you know the dates and what you must do to satisfy each condition. Receiving representation from a competent mortgage consultant is a huge help. They will provide you with advice and support, monitor deadlines, and provide a more positive experience. Gray Point Homes will offer assistance with the mortgage and overall real estate process. To get started, fill out the form below!

Let's Help You Find the Perfect Home!

Share this:

Latest Posts

A Home Buyer's Guide to 5 Benefits of Virtual Tours
New Construction Home Buying Process

A Home Buyer's Guide to 5 Benefits of Virtual Tours

The prospect of buying a new home is endlessly exciting. It's the start of new dreams, new chapters, and fresh starts. And virtual tours are the ...

May 11, 2021 | 3 minute read

Gray Point Homes: A House that Grows with You
Brand New Homes

Gray Point Homes: A House that Grows with You

Without question, timing is everything when it comes to landing your first home. However, it's important to look at your new home as a blank slate, ...

May 4, 2021 | 3 minute read

Custom Builders vs. Production Builders: Which is Best?
Brand New Homes

Custom Builders vs. Production Builders: Which is Best?

The dream of homeownership is something that never has to be out of your grasp, as long as you choose the right professionals to help you. Building a ...

April 27, 2021 | 3 minute read