Mortgage loan approval process

Written by shauna zamarripa
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Purchasing a home is a much longer and more in-depth process than any other purchase you will make. The mortgage approval process is not an overnight scenario, and there are many different factors that come into play when applying and being approved for a mortgage.

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The first step is to submit an application to a lender or mortgage broker. You will be asked questions relating to your employment, income, debt and credit history. Once the application is submitted there are many other items that will need to be provided, so be prepared to collect all of your financial documentation.


Lenders require proof of income when reviewing a file for mortgage approval. Acceptable sources include: paycheck stubs, W-2 forms, income tax returns, child support payments received, disability income received and bank statements. In many cases, all of these documents will need to be provided.

Debt and Credit

The lender will review the amount of debt you have currently and if you are in good standing with your creditors. Lack of credit or a poor credit history can jeopardise a mortgage loan approval.


Once your loan officer has a complete file with all of your required financial documentation, showing your income, employment, debt and credit history, she will submit it to an underwriter for further review. The underwriting process can take up to two weeks.


Once an underwriting department has reviewed a file, it will either deny the application outright or approve it pending certain conditions being met. Many times the conditions will be additional documentation showing a clearer picture of a home buyer's financial situation and employment verification. Once these items are verified, it's time to close on the loan.


When the application has been approved by the underwriting department for your lender and sent back to your loan officer, you will be allowed to close on a property. This is when you can set up an appointment at the title company to sign all of your final loan documents and get your keys.

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