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Call Stephen Kremer 972-407-7925
A simple and rewarding home loan experience.

How Purchase Loans Are Made


How Purchase Loans Are Made 
A Step-By-Step Walkthrough
1. Pre-approval¹ –Get pre-approved for a mortgage to get an idea of exactly how much house you can afford. Completing this step will also increase your negotiating power.
2. Loan Search –Put yourself in the hands of an experienced mortgage professional, someone who will help you to determine which financing options suit your needs today and in the future.
3. Loan Application– It’s crucial to supply the lender with as much information as possible, as accurately as possible. All outstanding debts as well as assets and income should be included.
4. Documentation– Paperwork supporting the application must also be submitted. Information commonly sought includes pay stubs, two years’ tax returns, and account statements verifying the source of the down payment, funds to close and reserves.
5. The Hunt –Begin shopping for a house. Once you find the right one, the terms of the sale will be negotiated, including the price and potentially the terms of the loan being sought.
6. Appraisal –Lenders require an appraisal on all home sales. By knowing the true value of the home, the borrower is protected from overpaying.
7. Title Search –This is the time when any liens against the property are discovered. A lien may have been placed on a property to ensure payment of outstanding debts by the owner. All liens must be cleared before a transaction can be completed.
8. Termite Inspection –While most purchase loans do not require a formal inspection for termite and water damage, some loans (especially government loans) allow for the possibility. If problems are found, repairs may be necessary.
9. Processor’s Review –All pertinent information will be packaged by your mortgage professional and sent to the lending underwriter, including any explanations that may be needed, such as reasons for derogatory credit.
10. Underwriter’s Review –Based on the information put together by the loan professional, the underwriter makes the final decision regarding whether a loan is approved.
11. Mortgage Insurance –Many lenders require private mortgage insurance when borrowers put down less than 20 percent on a loan.
12. Approval, Denial or Counter Offer –In order to approve a loan, the lender may ask the borrowers to put more money down to improve the debt-to-income ratio. The borrower may also need a bigger down payment if the property appraises for less than the purchase price.
13. Insurance –Lenders require fire and hazard insurance on the replacement value of the structure. Flood insurance will also be required if the property is located in a flood zone. In California, some lenders require earthquake insurance on condominiums.
14. Signing –During this step, final loan and escrow documents are signed.
15. Funding –At this point, the lender will send a wire or check for the amount of the loan to the title company.
16. Confirmation of Funding –The lender authorizes the disbursement of loan proceeds.
17. Closing –Documents transferring title will now be officially recorded by the County Recorder.
18. Congratulations, you are now a homeowner!

If you’d like to learn more, please give me a call at 972-407-7907. I’d be happy to speak with you!

Rob Dessommes NMLS # 176534-PrimeLending NMLS # 13649
Copyright © 2025 PRIMELENDING, A PLAINSCAPITAL COMPANY (PRIMELENDING) For licensing information, go to: www.nmlsconsumeraccess.org In accordance with Section 326 of the USA PATRIOT Act of 2001, PrimeLending NMLS: 13649 is required to obtain a copy of the documents used in identifying our new account customers. This notice is being provided to you for adequate notice given under this act. PRIMELENDING A PLAINSCAPITAL COMPANY®, PRIMELENDING ®, HOME LOANS MADE SIMPLE®, DISCOVER YOUR BEST ®, NEIGHBORHOODEDGE®, LOANTELLIGENCESM and LOANPLICITY® are trademarks, service marks, or registered trademarks or service marks of Hilltop Holdings Inc., licensed to PrimeLending, a Plains Capital Company, for its use. You may not use, display or reproduce them without the prior written consent of Hilltop Holdings Inc. and PrimeLending. Further, you may not remove, obscure, or otherwise modify any copyright, trademark, confidentiality or other proprietary rights notices displayed on, embedded in, or otherwise appearing in any Content offered by, viewed on, or received through this site. All other trademarks identified and contained herein are the property of their respective owners and their use herein does not imply sponsorship or endorsement of their products or services. This website is not intended to offer loan services for properties in New York. Product and program information presented subject to change. 1)Pre-approval means credit has been pulled and an AUS has returned eligible. A pre-approval does not signify that underwriting requirements have been met. All loans subject to final credit approval and acceptable property. Conditions and restrictions may apply. 2)All loans subject to credit approval and meeting eligibility requirements. Restrictions apply. Must meet minimum equity requirements. By refinancing an existing loan, the payments and total finance changes may be higher over the life of the loan. 3)All credit decisions for brokered products will be made by a third party. Restrictions and limitations apply. 4)Certain restrictions apply, subject to down payment assistance program guidelines. Not available in all areas. Please contact your PrimeLending loan officer for more details. 5)HousingWire Tech100 honoree in 2025. 6)Approval means an Underwriter has reviewed your application and has verified all necessary forms of income, assets, and credit. All loans subject to final credit approval and acceptable property. Conditions and restrictions may apply. 7)Extended Lock Option requires additional fees. Review the Long Term Interest Rate Lock Agreement for full details. Conditions and restrictions apply and are subject to change. Info as of 3/15/25. 8)Fast closing and processing is dependent on many factors including receiving timely documentation from the borrower. 9)These are brokered loan products. Not available in the following states: NY or NC. All credit decisions for brokered loan products will be made by the third-party lender. Restrictions and limitations apply. You must still live in the home as your primary residence, continue to pay required property taxes, homeowners’ insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure. As required by FHA, you will be charged an up-front mortgage insurance premium (MIP) at closing and, over the life of the loan, you will be charged an annual MIP based on the loan balance. Your current mortgage, if any, must be paid off using proceeds from your reverse mortgage loan. If your home needs repairs to be eligible for a reverse mortgage loan, you may be able to use the proceeds of the loan to accomplish this. Generally, the money received is not considered income and could be tax free, please consult your tax advisor and appropriate government agencies for any effect on taxes or government benefits.

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