This article provides a straightforward overview of the steps involved in obtaining a loan for a residential real estate purchase.
- Step 1: Get a Pre-Qualification Letter
Before you begin house hunting, it’s important to obtain a pre-qualification letter. This initial step helps you understand your borrowing capacity and sets realistic expectations for your home search.
To get started, contact a loan originator and submit a loan application along with the necessary supporting documents. An experienced professional will review your financial profile and help you determine how much you may qualify for. This includes estimating your monthly payment, which typically consists of:
• Mortgage principal and interest
• Property taxes
• Homeowners insurance
• HOA dues (if applicable)
Keep in mind that homeownership also comes with ongoing maintenance and repair costs, which should be factored into your budget.
Most loan originators offer pre-qualification letters at no cost. Some may request income and asset documentation, while others rely on verbal or stated information from your application. The more thoroughly your file is reviewed upfront, the smoother your loan process will be once you enter into a purchase contract.
Since pre-qualification is not a formal loan application, your loan originator can use a soft credit pull, which does not impact your credit score. After reviewing your information, they can provide:
- Your current credit score
• The best loan products you may qualify for
• Estimated interest rates and corresponding APRs
What AAXY Mortgage Offers at This Stage:
At AAXY Mortgage, we’re here to answer all questions you may have. We’ll review your financial situation and recommend the most suitable loan product from our wide range of offerings. If needed, we also provide consulting services to help you improve your credit or correct reporting errors (note: we do not offer formal credit repair services).
In addition, we collaborate with trusted professionals to address any real estate-related questions and offer practical guidance on what to do—and what to avoid—during your homebuying journey.
Step 2: Find an Appropriate Property and Execute a Purchase Contract
Once you’re pre-qualified, the next step is to identify a suitable property that fits your budget and goals. Work with a licensed real estate agent to explore listings, schedule showings, and negotiate terms.
When you’ve selected a property and reached an agreement with the seller, you’ll sign a purchase contract. This legally binding document outlines the terms of the sale, including:
- Purchase price
• Closing date
• Contingencies (e.g., financing, inspection, appraisal)
• Any addenda or amendments
Make sure to retain a copy of the fully executed contract, as it will be required for your loan file. If available, also collect the property survey and the declarations page of the hazard insurance policy.
Typically, the borrower—or buyer—works with a licensed real estate agent or broker to identify a suitable property, make an offer, and negotiate terms with the seller. Once both parties agree, a fully executed purchase contract is signed to formalize the transaction.
What AAXY Mortgage Offers at This Stage:
Once your purchase contract is signed, notify your loan originator immediately to begin official loan processing. At this point:
• The lender will perform a hard credit pull, which may impact your credit score
• You’ll receive a formal loan package, including a Loan Estimate outlining key terms, costs, and projected payments
• If you accept the lender’s offer, you’ll need to submit all requested supporting documents promptly
The lender will then forward your complete file to an underwriter, who will review your credit, income, assets, and property details. The underwriter will issue one of the following decisions:
• Conditional Approval (most common): approval subject to specific conditions that must be met before closing
• Suspension: temporary pause pending additional documentation or clarification
• Denial: if the loan cannot be approved based on current information
At AAXY Mortgage, we believe in fast, transparent decision-making. As a full-service lender, we can usually assess loan eligibility upfront—so you’re not left waiting weeks to learn whether your application will be approved.
AAXY Mortgage is affiliated with a licensed real estate brokerage. Our experienced brokers and agents are available to answer any real estate-related questions—even if you’re working with a different agent. If you’re considering making an offer on a property, we’re happy to provide a second opinion to help you make a more informed decision.