All lenders follow their own process for approving a mortgage. Discover how to apply for a mortgage loan at Cadence Bank.

The prospect of applying for and getting approved for a mortgage can be overwhelming, whether or not you’re new to homebuying. Every lender has a slightly different mortgage approval process, and it can be hard to know exactly what is required of you during each step of the application.
Below, we discuss how to apply for a mortgage at Cadence Bank—so you know what to expect when you take out a home loan with us.

Before you fill out an application

If you’re eager to get the mortgage process started, it may be tempting to go ahead and fill out an application, but there are several steps you should do first.

1. Check your credit score

One of the first things homebuyers should do is pull their credit report and make sure there are no surprises. If there are collection accounts or late payments affecting your credit score, you can resolve this before getting a mortgage.

The credit score needed to buy a house varies depending on what type of mortgage you are interested in, as well as the lender’s individual requirements.

You are entitled to a free credit report once a year through AnnualCreditReport.com. To improve your chances of getting approved for a mortgage, consider working on improving your credit before filling out a loan application.

2. Talk to multiple lenders

Considering multiple lenders can help you land the best interest rate for the type of mortgage you’re looking for. In addition, it can help you get a feel for the lender and the type of services that they offer. However, you should avoid filling out a formal application with multiple companies. Every time your credit is pulled, it can drop your score. This is especially important if your credit score is right on the edge of qualifying for a certain program.

When selecting a mortgage lender, consider what types of loan products they offer, what their interest rates look like and what types of requirements they have for obtaining approval.

Wondering how much you can afford for your monthly mortgage payment? Use our mortgage calculator to see how different interest rates affect your repayment.

Our mortgage loan approval process

Once you’ve taken some time to check your credit and explore different mortgage options, it’s time to formally begin the mortgage process.

1. Prequalification

Prequalification—often used interchangeably with the term preapproval—is the process of filling out a loan application with a lender and receiving an estimate of how much you may be able to borrow before you have a signed contract to purchase a new home.

Getting prequalified usually only takes a few days. After you apply, Cadence Bank will review your income, assets, liabilities and credit history to determine what types of mortgage programs you may qualify for.

Not only does prequalification give you an idea of what you can afford—it can also be an instrumental part of your home search.

2. Loan application

A loan application is very similar to a prequalification application, but it’s done at a different step in the homebuying process. The formal loan application is not completed until after you’ve found your new home and signed a purchase agreement with the seller.

What you fill out for prequalification is the start of the process. Cadence Bank will hold the buyer's application in a prequalification state for 120 days, or until the buyer finds a property. Once you have a signed contract with the seller, we will go ahead and enter the property address and send out loan disclosures.

At this point, you can also lock in your interest rate. Cadence Bank’s loan applications can be completed online, over the phone or at a bank branch with the help of a mortgage loan officer.

3. Processing

Since most credit documents need to be dated within 60-90 days of closing on your new home, you will probably be asked to provide additional documentation after filling out your loan application—even if you’ve already been prequalified through Cadence Bank.

While your loan is being processed, your loan officer or processor will reach out to you and let you know what type of documentation is needed. This will usually include documentation to verify your income, down payment, and total cash for closing and liabilities. The specific documentation required depends on your individual financial situation and what type of loan you are getting. By responding quickly to any requests from your loan officer or processor, you can keep the mortgage approval process on track.

At this time, your processor will order the property appraisal, open title and send out all needed verifications. They will also work with your real estate agent and the title company to gather any needed information on the property. Buyers can take this time to work with their real estate agent on any property inspections and a survey (if applicable).

The amount of time it takes to process a loan depends on how quickly you provide the required documentation, and how long it takes to obtain appraisal, title work and verifications. In general, you can expect processing to take several weeks.

>> Related Reading: Homebuyer’s Checklist: What Does an Inspector Look for During the Home Inspection?

4. Underwriting

Once the processor has everything verified, they will submit the file to underwriting for final approval. During the underwriting process, the completed loan file is reviewed and the underwriter confirms that all program guidelines have been met. This is when the final credit decision is made.

Before final approval, you need to have your property insurance (and flood insurance, if applicable) set up with your preferred insurance agent.

5. Approval and closing

It could take a month—sometimes more—to close on a house after signing your initial purchase agreement with the seller. This time frame varies from person to person, depending on factors such as what types of documentation are needed and how quickly your home can be appraised. 

After your loan is approved and all other requirements have been met, you will attend a closing at the title company to complete the deal. At this meeting, you will sign paperwork that transfers the ownership of your new home. You’ll then receive your keys, and your loan will be disbursed.

If you have any questions about what happens after closing—such as how to set up your first monthly payment—our mortgage team is here to provide continued guidance.

Find the right mortgage solution for you

To learn more about Cadence Bank’s mortgage services, get in touch with a mortgage professional today. Our team of experienced loan officers specialize in a variety of mortgage products, from conventional loans to FHA, VA and USDA loans. We are happy to discuss your financial situation and help find the right loan program for you.

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.