Step 6: Obtain your mortgage

Pre-approval got you in the door. The real loan process starts once you have a signed contract, and it runs on a deadline: the mortgage commitment date in your contract. Miss it without an extension and you can lose your protection, so the weeks after contract are about responding fast and not changing anything the lender already approved.

Loan types, briefly

Conventional loans are the most common, with down payments from 3 percent up, and mortgage insurance that drops off once you have enough equity. FHA loans allow lower credit scores and 3.5 percent down, with mortgage insurance that generally stays for the life of the loan. VA loans, for eligible service members and veterans, can be zero down with no mortgage insurance. USDA loans are zero down in eligible rural areas, which include many eastern Connecticut towns. CHFA loans through the Connecticut Housing Finance Authority offer below-market rates and down payment help for eligible first-time buyers.

Fixed-rate loans keep the same payment for the full term. Adjustable-rate loans start lower and change later. Your lender will lay out the options; your agent can tell you which loan types sellers in your town treat as strong.

Lock your rate

Once you are under contract, your lender can lock your interest rate for a set period, usually 30 to 60 days. Make sure the lock runs past your closing date with a cushion. If closing gets delayed and the lock expires, extending it can cost money.

The application and what they will ask for

Within a few days of signing the contract, you will complete the full application and send the lender the contract, plus updated versions of the documents you gave them for pre-approval. Expect requests for:

• Recent pay stubs, W-2s or tax returns, and bank statements
• Explanations for any large deposits, and where your down payment is coming from
• A gift letter if a family member is contributing
• Homeowner's insurance quote for the new house
• Condo association documents and budget, if you are buying a condo

Answer every request the same day. Underwriters do not move until the file is complete, and a slow buyer is the most common reason a commitment date gets missed.

Do not change anything

From contract to closing: no new credit cards, no car loans, no furniture financing, no job changes, no large unexplained deposits or withdrawals, and no moving money between accounts without telling your lender. Underwriters re-check credit and employment right before closing, and a new payment or a job change can lower what you qualify for or kill the loan outright. Buy the couch after you have the keys.

The appraisal

The lender orders an appraisal to confirm the house is worth what you are paying. An appraiser visits, measures, and compares it to recent nearby sales. If it comes in at or above the contract price, the loan proceeds. If it comes in low, the lender bases the loan on the appraised value, and the difference has to be resolved: the seller lowers the price, you bring more cash, you split it, or in some cases your agent challenges the appraisal with better comparables. How this plays out was largely decided by the appraisal language in your offer, which is why we talk about it before you write.

Underwriting and commitment

Underwriting is the lender's final review of your credit, income, assets, and the property. They may come back with conditions: another document, a letter of explanation, a repair required by the loan program. Clear them quickly. When everything is satisfied, the lender issues a written mortgage commitment, and your mortgage contingency is met.

Your contract has a commitment date. If the lender is not going to make it, your attorney requests an extension from the seller's attorney before the date passes, not after. We track this date from the day the contract is signed and stay in touch with your lender so nothing sneaks up on anyone.

Clear to close

Once conditions are cleared, the lender issues a clear to close and prepares the closing documents. You will receive a Closing Disclosure at least three business days before closing, showing your final loan terms and every dollar you will bring to the table. Compare it to your original Loan Estimate and ask about anything that changed.