Buying your first home is exciting, but it can also bring a lot of questions. How much can I afford? What documents will I need? How long does approval take? What happens after I find the house? Those are normal questions, and having a clear understanding of the mortgage process can help you move forward with more confidence.
At Anderson Brothers Bank, we believe home financing should feel personal, practical, and understandable. As a South Carolina community bank, our goal is to help you understand your options, know what to expect, and work with a local mortgage lender who can walk with you from the first conversation to closing day.
Start With Pre-Qualification Before You Start House Hunting
Before you fall in love with a home online or schedule a weekend full of showings, it helps to know what price range fits your financial picture. That is where mortgage pre-qualification comes in.
Pre-qualification is the process of working with a lender to review your income, debts, credit history, assets, and other financial details. A pre-qualification is not a pre-approval. Pre-qualifications are an estimate of the amount you can afford to finance, based on stated financial information that you provide and a preliminary credit review. Credit approval is subject to final underwriting, including an appraisal and verification of income, assets, and employment, and analysis of repayment ability, as well as title work.
A pre-qualification letter can help you shop with a clearer sense of your budget. It can also show real estate agents and sellers that you are taking the process seriously. In many markets, having a pre-qualification letter can make the homebuying process smoother once you are ready to make an offer.
Documents You May Need to Proceed from Pre-Qualification to Underwriting
No documentation is required for the prequalification process.
Once you are prequalified and have selected the home you wish to purchase, you should be ready to provide the following documents to proceed to underwriting and credit approval:
- Completed mortgage loan application
- Government-issued photo ID
- Recent pay stubs, typically covering the last 30 days
- W-2s or tax returns from the last two years
- Bank and investment account statements
- Social Security number for the credit check
- Information about current debts, including auto loans, student loans, credit cards, or other monthly obligations
- Additional documentation if you are self-employed, have variable income, or own rental/business property
The more organized your documents are, the easier it is for your mortgage officer to guide you through the next steps. If you are not sure whether something is needed, ask before you upload or send it. Your lender is there to help you understand the process.
The 6 Main Steps in the Home Loan Process
|
Step |
What Happens |
|
1. Pre-Qualification |
Your mortgage loan officer completes an initial review of the financial information you provide and the information in a credit report that we pull, with your authorization. If eligible, you may receive a pre-qualification letter to help guide your home search. |
|
2. House Hunting |
You work with your real estate agent to search for homes within your budget and make an offer when you find the right fit. |
|
3. Full Loan Application |
Once your offer is accepted, you complete the full mortgage application. Your lender may collect updated documents and discuss loan options, rate lock timing, and estimated costs. Within three business days of application, you will receive a Loan Estimate detailing the estimated loan costs, closing costs and other details to help you make informed decisions. |
|
4. Processing and Underwriting |
The loan file is reviewed, documents are verified, and an appraisal and title work are ordered. An underwriter evaluates the full file according to program and lender guidelines and makes a final credit decision. |
|
5. Clear to Close |
Once final conditions are satisfied, you receive your Closing Disclosure. This document outlines the final loan terms and closing costs and must be delivered to you at least three business days before closing. |
|
6. Closing Day |
You review and sign final documents, pay any required funds due at closing, and complete the process to become a first-time homeowner. |
What Your Credit Score Can Mean for Your Mortgage
Your credit score is one factor lenders review when determining which mortgage programs may be available to you and what rate and terms you may qualify for. It is important, but it is not the only part of your financial picture.
Lenders also review your income, employment history, debts, assets, down payment, property type, and loan program requirements. That is why it can be helpful to speak with a mortgage officer to learn how you can qualify for financing your first home.
If your credit score is not where you want it to be, you may still have options. A local mortgage officer can help you understand what lenders review and what steps may strengthen your eligibility over time.
|
Credit Score Range |
General Category |
Potential Mortgage Impact |
|
760+ |
Excellent |
May help you qualify for more favorable rates and terms. |
|
700-759 |
Very Good |
Often competitive for many loan programs, subject to full review. |
|
640-699 |
Fair to Good |
May still qualify for certain programs, but pricing or terms may be more limited |
|
Below 640 |
Needs Review |
Financing options may be more limited. Our qualified Home Mortgage Team may be able to help you explore options or take appropriate steps to qualify for home financing. |
How Much Do First-Time Homebuyers Need for a Down Payment?
Many first-time homebuyers are surprised to learn that a 20% down payment is not always required. Some loan programs are designed to help qualified buyers purchase a home with a lower down payment.
Depending on eligibility, examples may include conventional first-time homebuyer options, FHA loans, USDA loans for eligible rural areas, and VA loans for eligible servicemembers, veterans, and qualifying surviving spouses. Program availability, down payment requirements, credit criteria, property eligibility, and closing costs can vary.
Putting less than 20% down may also affect your monthly payment. For example, certain conventional loans may require Private Mortgage Insurance, commonly called PMI, until enough equity is built. Your mortgage officer can help you compare scenarios so you understand both the upfront cost and the impact on your monthly payment.
Why Work with a Community Bank for Your Home Loan?
Buying a home is not just a transaction. It is a major life decision, and it helps to have someone local you can talk to when questions come up.
At Anderson Brothers Bank, our mortgage team brings relationship-focused service to the home loan process. We know the communities we serve across South Carolina, and we understand that every borrower has a different story, timeline, and goal.
A community bank experience means you can ask questions, understand your options, and work with a real person who is invested in helping you make an informed decision. Whether you are just starting to explore or already preparing to make an offer, we are here to help you take the next step with confidence.
Ready to Take the First Step?
Talk with a local ABB mortgage lender - no cost, no commitment. Whether you are still learning or ready to begin pre-qualification, our Home Mortgage Team can walk you through your options and help you understand what comes next.
How long does the mortgage approval process take?
The timeline can vary by borrower, property, loan type, appraisal, title work, and underwriting conditions. Your mortgage officer can provide a more accurate timeline for your situation.
All loans are subject to credit approval, underwriting, property approval, program eligibility, and applicable terms and conditions. Loan programs, rates, terms, and requirements are subject to change. Not all applicants will qualify. Equal Housing Lender NMLS # 410840