Mortgage Loans

What’s The Mortgage Loan Process

Ready to live in your dream home? Approved Cash can help you get there.

What is a Mortgage Loan?

Mortgage loans, often shortened to “mortgages,” are loans you can get to purchase a house. There are several types.

Fixed-Rate Mortgages

A fixed rate mortgage’s interest rate doesn’t change. Because you can get fixed interest rate loans with term lengths of 10, 15, 20, 30, and 40 years. 15-year and 30-year fixed rate mortgages are the most popular loans.

Adjustable-Rate Mortgages (ARMs)

ARM interest rates change with overall interest rates are set by the Federal Reserve. One of the most common ARM types is called a 5/1 loan. A 5/1 loan has a fixed interest rate for your first 5 years, then a variable interest rate for the last 25 years.

Mortgage Loans

Because, mortgage loans are secured loans.

This means your house is the collateral. In the worst case, if you’re unable to pay your loan, the lender can take possession of your home — called foreclosure.

mortgage loan fha va

Mortgage Assistance For Various Groups

The government helps various special groups in society afford homes.

One type of special mortgage is the Federal Housing Administration (FHA) loan, insured by the FHA. Because FHA loans help borrowers with low income and/or poor credit that can’t afford down payments obtain loans at affordable rates.

FHA loans come with additional mortgage insurance payments. 

Like another type of special mortgage is the VA loan from the Department of Veteran’s Affairs. Because these loans provide a way for US Armed Forces veterans to easily obtain a mortgage. They require $0 down, charge no PMI, offer competitive interest rates, and don’t have strict credit requirements.

Should I Get a Mortgage Loan?

Few people can afford to buy a house with pure cash. Even if you have enough cash to buy a home outright, tying up a substantial amount of money in real estate likely doesn’t make financial sense.

If you get a mortgage, you can buy a home you love while having plenty of cash left over for other uses down the road. In this case, a mortgage offers you financial flexibility.

Plus, you might be able to write off your interest payments on your tax return.

How Do I Get a Mortgage Loan?

Mortgages often come with high financial requirements. Pay down other debts and raise your credit score to get the best mortgage offers. Save for your down payment as well.

Because the most common financial advice says to put down 20% of the home’s purchase price up front and take out a mortgage loan for the rest. 

Once you’re in great financial shape, get prequalified for mortgages at banks and other lenders. Prequalification involves the lender estimating how much they’ll lend you based on the basic financial information you give them.

Our system can match you to prequalified offers from local lenders within 24 hours — saving you valuable time in the home purchase process.

You can then house hunt with prequalifications in hand. Find your dream house and make an offer on it. Perform a home inspection to find any repairs the seller needs to make before you buy the house.

As a result, you can apply for your mortgage. Work with your underwriting team to make sure they have all the documentation they need. It’ll smooth out the process. Your lender will order an appraisal of the house to make sure they’re not giving you too large of a mortgage, then you can head to the closing table.

Congrats! You’re a homeowner.

What Do I Need to Get a Mortgage Loan?

Mortgages have extensive requirements and documentation.

First of all, there are the financial requirements. 

  • Credit: Mortgage lenders prefer to see that you haven’t applied to new credit within the last several months. As for credit score, 620-640 is the minimum for most mortgages. You do not need to send your lender a copy of your credit report. They can access that when they are making their lending decision. But be sure to save for a down payment.
  • Down payment: If you put down less than 20% on your home, your lender may charge Private Mortgage Interest (PMI) to cover their risk until you reach 20% equity in the home. If you put down more than 20%, you’ll start with more equity in your home and pay less interest over the life of your mortgage. Because of this, you will need to concedor your DTI
  • Debt-to-Income ratio (DTI): Your DTI measures how much you have in monthly debt payments compared to your income. Mortgage lenders like to see below 45% DTI. Homebuyers with excellent credit and sufficient cash reserves can get away with a higher DTI.

Documents you’ll need include the following.

  • Identification: A valid driver’s license can serve as identification.
  • Proof of assets: Bring two months of statements for investment accounts, IRAs, and bank Certificates of Deposit. If you have a 401(k), bring your most recent quarterly statement.
  • Proof of employment: In some cases, pay stubs can be enough to prove your employment. However, your lender may want to see a proof of employment letter from your workplace.
  • Proof of income: Pay stubs prove your employment. If you’re self-employed, bank statements and tax returns can prove your income. This helps establish your DTI. Bring proof of income for all other income sources, too.
  • Other records: Divorce, alimony payments, bankruptcy/foreclosure documents, etc.
applying for a mortgage and getting approved

Benefits of Getting a Mortgage Loan

Taking out a mortgage to buy a home brings you numerous advantages.

  • You can afford your dream home
  • You have more cash available for other uses
  • Can help you build credit
  • Mortgage interest may be tax deductible

What Are the Benefits of Getting a Mortgage Loan Through Approved Cash?

Shopping for mortgages takes a long time. It’s a pain.

Approved Cash makes it so easy to find lenders in your area that offer great rates on mortgage loans. 

All you have to do is fill out our form with your name, contact information, and details about your loan (type and loan amount). Our system handles the rest for you.

We only give your mortgage loan request to 3 lenders, all of which will be in your local area. Because that way, you won’t be bombarded with phone calls, but the lenders will still be driven to compete with each other for your business.


You can then finalize your loan details and get the mortgage you need to buy your new home.

Mortgage Loan Calculator

While you are there you can use our Mortgage loan calculator to determine your monthly payments: Calculate your Mortgage payments with Taxes, Insurance, With PMI, and different loan options.

Are you ready to Get Your Dream Home? Submit a Request and Get APPROVED TODAY!

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Submitting a request for a mortgage loan on our site will not affect your credit score.