There are a few key steps during the mortgage process. Understanding what happens during each step will help you prepare and will make the process go more smoothly.

Pre-Approval

It's important to know how much you can potentially afford to borrow. Pre-approval will help during your home search and seller negotiations.

Start the Pre-Approval Process >​

Ap​​plic​ation

Your M&T Mortgage Loan Officer will discuss financing options and help you complete a mortgage application when you're ready. After you’ve completed your application, you will receive a Loan Estimate outlining credit and other costs, and transaction terms associated with your loan, and your application will be submitted for processing.

Loan P​​​rocessing

Your Loan Processing Team obtains third-party information (for example, a property appraisal) that is required to complete the transaction. The Loan Processor/Loan Specialist will also work with you to collect any additional documentation you may be required to provide, and then prepares your file for a credit review and decision.

Credit Re​​view/Underwriting

Your loan file documentation will be reviewed, and a credit decision made. If you are approved, you will receive a written Mortgage Commitment that summarizes your mortgage loan and lists any terms and conditions that must be met before or at closing.

Closing Disclosure

Lenders are required to provide the borrower with a Closing Disclosure which reflects the critical financial aspects of your mortgage loan, including purchase price (or payoff balance for refinance, as applicable), loan fees, interest rate, estimated real estate taxes, insurance, closing costs and other expenses, as well as the funds needed for closing. Your Attorney or Settlement Agent provides M&T with the information required to prepare the Closing Disclosure, which you will receive no less than three business days before closing, and most commonly approximately 7-10 business days (mailed or delivered electronically) before closing.  It's important to review your Closing Disclosure and ask any questions you may have prior to closing.​ If you have received these documents and have questions, please contact your loan advisor.

Loan Closi​​ng

Depending on the state where your property is located, your Settlement Agent or Attorney will confirm the scheduled closing date and time with you and review the funds needed to close (if any). On the closing date, you will sign your paperwork and complete the loan closing.

Your individual interest rate is determined by adjustments made to the base rate. These adjustments are driven by your credit score, loan purpose, occupancy type, loan-to-value, any discount points purchased and other factors, including loan product type.

Interest rates fluctuate. Inflation, retail inventory, consumer activity and employment determine what interest you pay on your mortgage loan. With a healthier economy more money becomes available, pressure on inflation increases and rates, generally, go up.

The Federal Funds Rate is what banks charge each other to loan money. That translates to other lending transactions, such as credit cards, auto loans and mortgages.

The Federal Reserve can change the rate up to eight times a year at Federal Open Market Committee meetings. When rates change, the Fed buys or sells government treasury bonds to change the level of money available to the financial markets and the public. This means a constantly changing table of base interest rates for mortgages.