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Steps of the Home Loan Process

The home loan process can be complex, so we break down each step of the process to help you get closer to your dream of owning a home.

Buying a home is an exciting milestone in life, but understanding the home loan process can be overwhelming especially if you’re a first-time home buyer. Below, we simplify the steps you need to take to get approved for a home loan so you can get closer to your dream of owning a home.

1. Financial Self-Assessment and Preparation

  • Create a Budget: Assess your monthly spending habits. Add up your total monthly bills and subtract it from your monthly income. Tracking your budget will help you see if you are ready to support a mortgage payment.

  • Assess Your Credit Score: Find out what your credit score is, and if it is lower than you would like, work toward building up your credit.

  • Develop a Savings Plan: Saving a small amount of money at a time will help you reach your savings goals easier. Saving a little every month for a year is one way you can save toward a down payment on your dream home.

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2. Apply for a Loan

Once you feel ready, you can apply for a loan. To apply, you’ll need to fill out a loan application. The documents you’ll need to complete a home loan application might include:

A) Proof of Income: Your most recent paystubs

B) Proof of Employment: For the past two years

C) Proof of Residency: Current street mailing addresses

D) Proof of Identity: Current driver’s license, state-issued ID or Social Security card

3. Origination and Underwriting

Origination: When you submit your loan application, a licensed loan specialist reviews financing options and works with you to complete the credit application. You may then be issued a “conditional approval.” This means your information must be verified before a full approval offer can be issued to you.

Underwriting: The underwriting process will include a review of a customer’s ability to repay. The loan specialist will determine a borrower’s ability to repay by considering the borrower’s income, assets, employment status, liabilities, credit history, and the debt-to-income (DTI) ratio.

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4. Satisfy Loan Conditions and Processing

  • Completing all tasks assigned in the “conditions to approval” list

  • Tasks could include: Additional proof of income, proof of savings/emergency funds, proof of ability to repay the loan

  • Once conditions have been satisfied, you’re approved! Expect a call from a Vanderbilt representative to discuss any additional info that you may need to move on to the next step.

5. Picking Out Your New Home

  • Select your dream home

  • Sign a purchase agreement with the seller

  • Your processor will order a home appraisal if needed and will provide you with a copy of the appraisal

6. Closing

Congratulations! You’re now at the final step of the home loan process:

  • Titling is finalized with the title company

  • Closing documents are signed

  • Closing costs are paid

The home loan process can be confusing, but don't worry! We're here to help you every step of the way. View the infographic to see an overview of each step of the manufactured home loan process.

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