What is the first step in the mortgage process?

The first step in the mortgage process is applying for the loan. This is a crucial action as it sets the foundation for the entire home-buying experience. When an individual applies for a mortgage, they provide necessary financial information and documentation to the lender, which helps determine their eligibility for a loan and the amount they can borrow.

Through this application, potential homeowners can better understand their financial position and obtain a preapproval, which is essential when they begin house hunting. This preapproval not only clarifies their budget but also signals to sellers that they are serious and capable buyers.

Finding a real estate agent is an important part of the home-buying process but occurs after the loan application, as having financing prearranged allows the agent to guide the buyer more effectively. Getting approved for credit is part of the loan application process; however, it typically follows the initial submission of the application. Submitting an offer on a house inherently assumes that financing has already been addressed, making it a step that comes after the application.