How to Apply for a Mortgage

Buying a home is one of the biggest financial decisions you’ll ever make—and unless you’re buying with cash, it all starts with a mortgage. Understanding how to apply for a mortgage doesn’t just increase your chances of getting approved; it can also help you save thousands of dollars over the life of your loan.

At CapCenter, we’ve helped thousands of buyers navigate the mortgage process while eliminating unnecessary fees. Our Zero Closing Cost Mortgage has made homeownership more accessible—and more affordable—for over 27 years. If you’re ready to apply for a mortgage, here’s how to do it the right way.

Step 1: Understand What a Mortgage Is and What You Need

Before diving into the application process, it’s worth grounding yourself in the basics. A mortgage is a loan that allows you to purchase a home, using the home itself as collateral. You agree to repay the loan over a set period—typically 15 or 30 years—through monthly payments that include principal, interest, and often property taxes and homeowners insurance.

What do you need to apply?

• Proof of income (W-2s, pay stubs, tax returns)
• Proof of assets (bank statements, investment accounts)
• Good credit history (ideally a score above 620, though options vary)
• Employment verification
• Debt-to-income (DTI) ratio within limits (typically under 43%)

CapCenter’s team is happy to walk you through what documents you’ll need and when. We also offer a mortgage calculator that can help you estimate your monthly payment.

Step 2: Check Your Credit and Budget

Your credit score plays a big role in determining your eligibility, interest rate, and loan options. Before applying, it’s smart to:

• Review your credit report for errors or outdated information
• Pay down high-interest debt to lower your DTI ratio
• Avoid taking on new credit until your loan closes

This is also the time to get clear on your budget. Consider not just how much a lender might approve you for, but how much you are comfortable spending each month.

CapCenter can help you get prequalified early in your journey, so you know what price range to shop in—and whether you’re on track for approval.

Step 3: Get Preapproved

Preapproval is a major milestone and one of the most important steps in the mortgage process. It signals to sellers and agents that you’re a serious buyer with financing already lined up.

When you apply for a mortgage preapproval, your lender will:

• Pull your credit
• Verify your income and assets
• Evaluate your DTI ratio
• Provide a preapproval letter showing how much you qualify to borrow

Unlike a prequalification (which is more informal), a preapproval involves document review and underwriting. At CapCenter, our preapproval process is fast, straightforward, and always fee-free.

You can learn more about it in our article: How Do Mortgage Preapprovals Work?

Step 4: Choose the Right Mortgage Loan

Once you’re preapproved, you’ll begin narrowing down what kind of mortgage loan is best for you. The main types include:

• Conventional loans: The most common, typically requiring 3–20% down depending on credit.
• FHA loans: Government-backed loans with more lenient credit and down payment requirements.
• VA loans: Exclusive to eligible veterans and active service members, with zero down payment and no PMI.
• Jumbo loans: For home prices exceeding conforming loan limits.

You’ll also choose between:

• Fixed-rate mortgages: A stable monthly payment over the life of the loan.
• Adjustable-rate mortgages (ARMs): Lower initial rate that adjusts after a fixed period.

Your CapCenter loan consultant will help you compare options, ensuring you understand what’s best for your situation—not just now, but years down the road. And since we don’t work on commission, our advice is always in your best interest.

Step 5: Apply for the Mortgage

Once you’ve selected a property and had your offer accepted, it’s time to officially apply. If you’ve already been preapproved, much of this step is already complete—but you’ll need to update your file with the specific property information and finalize your loan choice.

Your lender will provide you with a Loan Estimate, which details your projected monthly payment, loan terms, estimated closing costs, and other critical information. This document allows you to compare offers across lenders if needed—but with CapCenter, you’ll already know you’re saving thousands with our Zero Closing Cost offer.

Applying typically involves:

• Uploading updated documents (pay stubs, bank statements, etc.)
• Signing disclosures
• Locking in your interest rate

Once everything is submitted, your file goes to underwriting for final review.

Step 6: Navigate the Loan Processing and Underwriting Stage

During processing and underwriting, your lender works behind the scenes to ensure every detail of your financial profile and the property is reviewed and verified.

This stage typically includes:

• Ordering an appraisal to confirm the home’s value
• Title search and insurance to confirm clear ownership
• Review of documentation to confirm income, employment, and assets
• Verification of down payment and reserves

CapCenter’s fully in-house team helps speed up this stage. Our underwriters, processors, and loan consultants work in the same system—eliminating costly delays and communication breakdowns.

We’ll keep you informed every step of the way with a clear timeline and updates.

Step 7: Receive the Loan Commitment and Prepare to Close

Once your loan is approved, you’ll receive a loan commitment letter, which means underwriting is complete and your file is cleared to close.

At this point, you’ll:

• Receive a Closing Disclosure (CD) at least three business days before closing
• Review final figures, including monthly payment and total cash to close
• Coordinate your homeowners insurance policy (CapCenter can help with this too—we shop 30+ carriers to get you the right coverage at the right price)
• Conduct a final walkthrough of the property

Your CapCenter team will guide you through what to expect on closing day. And remember, with us, you’re not paying any lender fees, junk fees, or closing costs—just a smooth process and serious savings.

Step 8: Close on Your Loan

Closing typically takes place at a local attorney’s office or title company, depending on your state. You’ll sign the final documents, pay any required closing funds (typically your down payment and prepaid expenses), and receive the keys to your new home.

What’s not included? Thousands of dollars in closing costs—because you used CapCenter.

Here’s what you’ll walk away with:

• Final signed mortgage and promissory note
• Deed to your new home (recorded with the county)
• Payment instructions for your first mortgage bill
• And the satisfaction of knowing you kept more money in your pocket

Why Apply with CapCenter?

CapCenter isn’t just another mortgage lender. We were built from the ground up to eliminate unnecessary fees and streamline the process for buyers and homeowners. For nearly three decades, we’ve done things differently—and better.

What sets us apart:

• Zero Closing Cost Mortgages: We don’t just waive lender fees—we eliminate all closing costs typically paid by the borrower.
• In-House Realty and Insurance: We offer expert real estate agents and insurance advisors under the same roof, making your entire transaction simpler and smoother.
• Unmatched Transparency: You’ll know exactly what you’re getting—no surprises, no upsells, no games.
• Expert Team, Not Salespeople: Our team is here to help you, not sell you. We don’t earn commissions, which means we focus solely on what’s best for you.

You can start your application at any time with our easy online mortgage application, or reach out to speak with a real person who knows your market inside and out.

FAQs: Mortgage Application Process

Do I need a 20% down payment to get a mortgage?
No. Many buyers put down far less. Some loan types, like FHA or VA, allow for down payments as low as 3.5% or even 0%. CapCenter can help you evaluate what makes the most financial sense.

How long does the mortgage process take?
On average, about 30 days from application to closing—but with CapCenter’s in-house team, we often close much faster.

Does applying hurt my credit?
A mortgage application results in a “hard” inquiry, which may lower your score slightly. But shopping for a mortgage within a 30-day window only counts as a single inquiry for credit scoring purposes.

Can I apply for a mortgage before I find a home?
Yes—and you should. Getting preapproved gives you a clear budget and makes your offers stronger in competitive markets.

How do I know which mortgage is right for me?
That’s what we’re here for. Your CapCenter loan consultant will help you compare options, understand the pros and cons, and make the smartest decision for your goals.

Final Thoughts

Applying for a mortgage doesn’t have to be intimidating. When you work with a trusted, transparent partner like CapCenter, the process becomes clearer, faster, and more affordable.

From preapproval to closing day, we’re here to guide you every step of the way—with no closing costs, no surprises, and no pressure.

Ready to start your mortgage journey?
Apply online now or reach out to speak with a mortgage expert.

‍