You finally found the perfect house after looking for months and months. Now, you are anxious to buy your new home and move in. But you still have one more task ahead of you- the mortgage loan.

Step One: Pre-qualification

Pre-qualification is an estimate of your borrowing power. This estimate is based only on the information you provide and is not verified by First Flight.

Step Two: Mortgage Application

This form will ask for detailed information about you, your employment record, and the home you are purchasing, etc. During this step you may also be asked to provide certain documentation including: W2, paycheck stubs, and the purchase contact (offer to purchase).

Step Three: Underwriting

Evaluating your credit history, debts, assets, income, and information about the property you are wishing to purchase, in order to make a mortgage loan decision defines underwriting. The following are some factors consider in the underwriting process:

1. Collateral- the value of the property is confirmed by an independent appraisal comparing the property you would like to purchase to other properties that are similar and have sold recently in the area you wish to buy.
2. Capacity- Your income and overall debt are evaluated to determine if you have the ability to pay the loan back on a timely basis.
3. Credit- In order to insure you have a history of paying your current obligations on time; your credit history is also evaluated.

Step Four: Processing

Processing your loan involves collection of all the outstanding documents that are needed to satisfy all the conditions set forth by the underwriter in your loan commitment letter.

These conditions can include verifying your income and assets, reviewing the Offer to Purchase and appraisal, etc. The processing step of the loan also includes putting together the loan package which will be sent to the attorney's office for closing. To prepare for the upcoming closing the following steps are required: scheduling the closing time and date, choosing the closing attorney, and obtaining homeowners insurance.

Step Five: Closing

At the loan closing, or settlement, your mortgage is activated, the title (ownership) to the property is transferred from the seller by recording a deed, and you are given the keys to your new home.