Steps In The Mortgage Process For Purchasing West Newbury MA Real Estate

There are several major distinct steps in the home purchase process, and several relate to obtaining financing. It can be complicated for both new and repeat home buyers. This blog offers basic information about steps in the mortgage process for purchasing West Newbury MA real estate and covers what you may want to know before beginning the process.

Steps In The Mortgage Process For Purchasing West Newbury MA Real Estate

The Pre-approval

A pre-approval is a preliminary review of your finances and credit score to determine what you may be able to obtain for a loan amount. It ensures that you meet the most basic criteria for a mortgage. Pre-approvals do not guarantee that you will be able to obtain financing, but is an important first step in the mortgage process.

Mortgage Application

An application takes place usually after you have an accepted offer on a property. You may be required to furnish additional financial paperwork and information. The specifics on the home are also reviewed by the lender. They will request a copy of the Purchase and Sales agreement in order to proceed. Your contract may require that you submit an application within a specified period of time.

Mortgage Appraisal

An appraisal is mandated by a lender (although buyers are in most cases required to pay the cost) to pinpoint the current market value of the property. Appraisers will compare your property to others that recently closed in the area within a limited time period. A specific dollar value is noted. Ultimately, the value of the real estate must justify the mortgage amount.

Commitment Letter

After your personal information and the property details are reviewed, the lender issues a commitment letter. This assures the parties that no major problems have been identified and that the lender is somewhat sure that the mortgage will obtain full approval. There will be remaining conditions noted in the letter such as an employment verification and final credit check. It is therefore crucial not to make significant purchases or alter your financial situation even after a commitment is issued as it may prevent a loan from closing.

Clear to Close

A clear to close is basically the final approval for financing. It verifies that all requirements have been met and that the mortgage company will submit the file to the closing agent. This may occur within days or hours before the anticipated closing date.

The Closing

The settlement includes signing of documentation and filing of paperwork into public record. Be sure to bring official identification and a money order or bank check for any funds you are paying. Personal checks or cash are ordinarily not acceptable. The exchange of funds takes place at or shortly after and the real estate becomes officially yours!

Some Extra Advice

Deadlines are a critical factor of any real estate transfer, so make sure that you understand the deadlines and what you must do to comply with each one. Working with a competent mortgage professional and real estate agent will be a huge help. They can provide you with guidance and support, monitor deadlines, and ensure a more positive experience. As a local real estate professional, I will provide guidance on the mortgage and overall real estate process. You may reach me, John Wells, at Wellsco Realty via phone at 978-518-1481 or email at

About Editor-John P. Wells

I am a resident of Newburyport and have worked in education, high tech and urban development. My interests in architecture and construction are invaluable to my clients. For more information please visit the Wellsco website.