What Happens After You're Pre-Approved

Congratulations, now the real work begins

Getting pre-approved is an important milestone. It means a lender has reviewed your income, assets and credit and believes you can qualify for a loan up to a certain amount. But a pre-approval isn't a final loan approval. Here's what happens next and how to keep things on track.

Shop within a comfortable budget

Your pre-approval shows a maximum, not a target. Think about the payment you're comfortable with after accounting for savings goals, childcare, commuting and other priorities. Ask your loan officer for payment estimates at a few price points so you can shop confidently.

Protect your pre-approval

Between pre-approval and closing, avoid changes that could affect your loan. Don't open new credit cards or finance a car. Don't make large unexplained deposits or move money around without documenting it. Talk to your loan officer before changing jobs. Keep paying all your bills on time. Lenders often recheck credit and employment before closing.

Making an offer

When you find the right home, your real estate agent will help you write an offer. Your pre-approval letter is usually included. Your loan officer may update the letter to match the offer price. Offers commonly include contingencies for inspection, appraisal and financing, which protect you if certain things go wrong. In competitive situations, your agent can advise on how to make your offer stronger.

Offer accepted: open escrow

Once your offer is accepted, escrow opens and you'll deliver your earnest money deposit. You'll schedule a home inspection and review disclosures. Your loan officer will send your file to processing and provide a Loan Estimate, which outlines your loan terms and estimated costs.

Locking your rate

A rate lock protects your interest rate for a set period, often 30 to 45 days, while your loan is processed. We'll talk about when to lock based on your closing date and the market. If rates move after you lock, your rate stays the same as long as you close within the lock period and your loan details don't change.

Appraisal

The lender orders an appraisal to confirm the home's value. If the appraisal comes in at or above the purchase price, great. If it comes in lower, you may be able to renegotiate the price, bring in additional funds, or use your appraisal contingency, depending on your contract.

Underwriting and conditions

The underwriter reviews your entire file and may issue conditions, which are requests for additional documents or explanations. This is normal. Respond quickly and completely to keep things moving. Once all conditions are satisfied, you'll receive final approval, often called clear to close.

Closing Disclosure and signing

At least three business days before closing, you'll receive your Closing Disclosure, which shows your final loan terms and costs. Compare it with your Loan Estimate and ask about anything that changed. Then you'll sign your loan documents with a notary or at the escrow office and wire or deliver your remaining funds to close.

Funding and keys

After signing, the lender funds the loan, the deed is recorded, and the home is officially yours. Your agent will coordinate getting you the keys. Keep copies of your closing documents in a safe place.

Throughout the process, communication is key. I'll keep you, your agent and escrow updated so there are no surprises. Ready to take the next step? Let's talk.