👥 What Does a Loan Officer Really Do?
What really happens behind the scenes (and how to stay ahead of it).
Buying a home is a big deal — emotionally and financially. But when you understand the process from start to finish, it becomes a lot less intimidating.
Whether you’re buying your first home, refinancing your current one, or exploring your options, this step-by-step breakdown will show you what to expect, who does what, and when key decisions happen.
✅ Step 1: The Application
This is where it all begins.
You’ll complete a loan application (also called a “1003”) that collects information about:
- Your income and employment
- Credit profile
- Assets (savings, checking, retirement, etc.)
- Property type and purpose
What You’ll Need:
- Pay stubs, W-2s or tax returns
- Bank statements
- Government-issued ID
- Other documents depending on your income type
💬 Tip: Your loan officer will walk you through this and help you gather what’s needed. It’s okay if you don’t have everything ready upfront.
🔍 Step 2: Credit Pull & Pre-Approval
Once your application is submitted, your lender will review your credit report and assess your eligibility.
If you’re buying a home, you’ll typically receive a pre-approval letter to show sellers you’re qualified to make an offer.
If you’re refinancing, your lender will evaluate your current mortgage, home equity, and credit to structure the best solution.
🔑 Why this matters: Pre-approval gives you clarity on how much home you can afford — and puts you in a stronger position when negotiating.
🏡 Step 3: Find a Home & Make an Offer (Purchase Only)
With pre-approval in hand, you can confidently search for homes. Once you find the right fit, your agent will help you submit an offer.
If accepted:
- You’ll sign a purchase agreement
- Pay earnest money (a deposit to show you’re serious)
- Begin the official mortgage process
📑 Step 4: Processing & Underwriting
Now the heavy lifting happens on the lender’s side.
Processing includes:
- Verifying your documents
- Ordering the home appraisal
- Running title work
- Setting up third-party services (like insurance and escrow)
Underwriting includes:
- A deep review of your finances
- Ensuring the loan meets guidelines (FHA, VA, Conventional, etc.)
- Reviewing risk and issuing conditional approval
✍️ Tip: You may be asked for updated documents during this stage — that’s normal. Being responsive helps avoid delays.
📄 Step 5: Final Approval & Clear to Close
Once the underwriter confirms all conditions are met, you’ll receive a final loan approval — also known as “Clear to Close.”
At this point, your closing documents are prepared and your signing appointment is scheduled.
You’ll also receive a Closing Disclosure (CD) at least 3 business days before you sign — this outlines all final costs and terms.
🖊 Step 6: Closing Day
This is the finish line (and the beginning of your next chapter).
At closing, you will:
- Sign your final loan documents
- Pay any remaining closing costs
- Receive the keys to your new home (or finalize your refinance)
Your loan is officially funded, and the property is recorded in your name.
🎉 Congratulations — you’re a homeowner (or now have a more optimized mortgage)!
🔁 How Long Does It All Take?
- Typical purchase: 30–45 days
- Typical refinance: 20–30 days
- Fast closings may happen in 15 days or fewer (with prompt responses and simple files)
🧠 Final Thought: It’s a Process — Not a Mystery
The mortgage process has a lot of moving parts — but that doesn’t mean it has to be overwhelming. With the right team (like PRMI), you’ll always know what’s happening and what’s next.
We’re here to help you navigate every step with clarity, confidence, and expert support.
👉 Ready to get started?
Let’s walk through your options together — no pressure, just answers.