As you begin canvassing your favorite neighborhoods for the home of your dreams, keep several things in mind. Create a list of the amenities and features you’re looking for. Consider the number of bedrooms and bathrooms you’ll need, and consider the amount of square footage you’d like. Take a look at neighborhood offerings, including school districts, local businesses, crime rates, and consider the cost of the average home in that area.

As you determine cost, take into account utilities and property taxes while calculating your monthly mortgage payment capabilities.

After the loan application process, you’ll enter the processing phase. During this phase, the loan processor takes your mortgage application into consideration. The loan processor will first verify all information you’ve supplied, appraising the home and looking at extensive credit reports. They’ll compile proof of employment, income, and assets. They’ll also look into your homeowner’s insurance, debt issues, and any other outstanding payments you might have. Your income will receive a great deal of scrutiny. It’s the processor’s job to ensure that your total monthly mortgage payments don’t eat up your total monthly gross income.

During this phase, mortgage underwriters will assess the risk associated with approving your loan. They will compare your financial profile and capabilities with your lender’s loan guidelines and required criteria. The underwriter makes the final call on your loan request. During the underwriting process, the underwriter will take a look at your proven ability to repay the mortgage. This will require the underwriter to take an in-depth look at your employment, debt, assets, and income. Underwriters determine whether you have or will have enough money to handle your current financial obligations, as well as the new proposed mortgage. Your credit score is essential in this process; your credit report will be examined to determine how you handle and repay past loans and bills. The underwriter will also look into whether the loan amount exceeds a property’s value; if it does, the loan will not be accepted.

Once you reach closing, you’ve rounded the final base. During the closing process, the property title is passed from the seller to the buyer. A closing agent oversees this process, which can occur in the title company, escrow office, or your new home. The closing agent serves as mediator between the seller and the buyer, and makes sure all essential documents are legally signed and recorded.

During closing, your role will largely consist of reviewing, authorizing, and dating a plethora of legal documents. After closing completes, you’ll receive the title, exchange money, and the house will officially be yours.