What Are Mortgage Process Flow Charts? Explained With Examples

Are you tense because of the increasing size of your mortgage agency? Do you feel overwhelmed by growing borrowers? Use mortgage flowcharts to ease your troubles.


Lenders can upgrade their mortgage-providing service by streamlining the process via mortgage process flowcharts. Let your borrowers feel confident in your mortgage firm.

mortgage process flowchart basics

Buying a house is a big financial commitment. But, the financial aspect may be a major obstacle standing between you and your dream home. It is where the mortgage plays its role. If you are unsure how to steer the complex mortgage loan process, don't worry. You're not alone in this matter.

Many homebuyers face similar issues when trying to get a mortgage. Understanding the mortgage loan process is critical to ensure a smooth journey towards homeownership. In this guide, we will walk you through mortgage loan process flow charts. The guide will outline the general steps involved in creating mortgage process flow charts.

In this article
  1. What Is Mortgage Loan Process?
  2. Best Editable Templates of Mortgage Process Flow Chart
  3. Craft Your Mortgage Loan Process Flow Chart More Creatively with EdrawMax!
  4. Benefits of Using Mortgage Loan Process Flow Chart
  5. Conclusion

Part 1. What Is Mortgage Loan Process?

A mortgage loan is money a bank or lending company gives you to buy land. You pay back the money over time, usually in monthly payments. The bank can take your property away if you don't pay back the money. It helps people who can't afford to buy a property all at once. But remember, you need to be able to afford the monthly payments to keep your home safe.

What Are the Steps of the Mortgage Loan Process?

Embracing the mortgage process sequentially brings a sense of clarity to homebuyers. The step-by-step process of obtaining a mortgage loan involves the following stages:

Preparation and Research

Determine your budget and assess your financial readiness for a mortgage. Research various loan options and mortgage lenders. It will help you find the best fit for your needs.


Reach out to potential lenders to get pre-approved for a mortgage. Pre-approval offers an estimate of how much you can borrow. It will also allow a more detailed assessment of your financial situation.

House Hunting

The next step is the search for your dream home. Work with a real estate agent or explore online listings to find properties. Always ensure the agency suits your budget and needs.

Formal Loan Application

After the seller accepts your offer, submit him a formal loan application. Provide details about the property, your financial status, and employment history.

Document Submission

The next step is submitting the required documents, such as tax returns, pay stubs, and bank statements. These documents will assist the lender in verifying your financial details.

Loan Processing

The lender's team will review your application and documents. They may request additional information or clarifications as needed.


During underwriting, the lender's underwriter evaluates your application. He also checks credit history and the property's appraisal to assess the risk of lending to you.

Loan Approval

If your application passes the underwriting process, the lender approves your mortgage loan. You'll get a formal loan commitment letter. This letter will contain the terms and conditions of the loan.


On the closing day, all the parties involved in the transaction will meet to sign the necessary paperwork. You'll need to pay the closing costs. In the end, the lender will transfer property ownership to you.

Mortgage Loan Process Flow Chart

Securing a mortgage loan can be a formidable task. Yet, mortgage loan process flowcharts can simplify this process. They serve as a roadmap to homeownership. A mortgage flowchart is a visual description of the entire mortgaging procedure. This structured approach breaks down the journey into several well-defined steps. Thus, such diagrams make the process manageable and less overwhelming.

Part 2. Best Editable Templates of Mortgage Process Flow Chart

Individuals use the mortgage to get real estate without making full upfront payments. Instead, borrowers gradually repay the loan amount along with interest. The payment continues over a specified period until they regain full property ownership. We have offered a few examples of mortgage process flowcharts for your understanding:

The mortgage loan process starts with a loan interview. During the interview, the borrower discusses his financial condition and other needs. The mortgage broker analyzes the interview. Afterwards, the borrower submits their mortgage application to the bank. He must also provide the necessary documents and information.

Upon careful review, the bank issues a conditional or unconditional approval. The broker notifies the client via phone, letter, or fax. The client then receives the loan documents from the bank. He must return them along with building insurance to the bank. Finally, the mortgage process ends with a settlement. The last step involves loan finalization. When the client pays back the loan, the property officially transfers to the borrower's ownership.

The home loan process plays a pivotal role in the real estate market. It allows families to achieve the dream of homeownership. The first step in the home mortgage process is receiving and scanning the mortgage application. Then, the application details are captured for further review. A preliminary investigation is done to ensure all needed details are provided.

If the application does not meet the policy criteria, the client receives an automatic rejection letter. However, if the application is complete, a credit check is performed. The agency also asks for additional material. It may include income tax and credit history. Upon fruitful completion, credit approval is granted. If approved, a credit expert negotiates the terms. In the end, the client gets an approval letter.

Part 3. Craft Your Mortgage Loan Process Flow Chart More Creatively with EdrawMax!

Many emerging lenders face a common issue while navigating mortgages. Numerous steps, intricate paperwork, and unfamiliar jargons make the process confusing. Thus, they yearn for a reliable solution that simplifies the mortgage process. If you are one of those mortgage companies, we suggest using EdrawMax.

edrawmax mortgage process flowchart creator

The tool allows flowchart creation for a more manageable and easily digestible process. With an extensive template library, users can easily tailor their mortgage flowcharts to suit their needs. The collaborative features enable seamless teamwork. Clients and stakeholders can negotiate to create a practical workflow. Ever-expanding symbol libraries, prebuilt themes, layouts, and export options are its prime assets. Another groundbreaking innovation is its AI feature. This functionality allows seamless flowchart creation with a single click.

How To Design a Mortgage Loan Process Flowchart With EdrawMax?

How To Design a Mortgage Loan Process Flowchart With EdrawMax? Here is how to transform your mortgage process into a streamlined flowchart:


Run the "EdrawMax" application. Sign up to create an EdrawMax account.


Hit the "New" option in the left panel. Click the "Basic Flowchart" tab in the main interface.

new mortgage flowchart edrawmax

Click the "Templates" option to initiate using a prebuilt template. Type "Mortgage Process Flowchart" in the search bar. Proceed with your desired template.

mortgage flowchart template edrawmax

Sketch a skeleton of the entire flowchart. Draw all the necessary shapes on the canvas through drag-and-drop.

edrawmax mortgage flowchart draw shapes

Enter relevant text in each box to forge your diagram into a flowchart. You can modify the text's setting using the quick toolbar.

menu to add connectors.

Link all the symbols through connectors. Go to the "Connector" option under the "Home" menu to add connectors.

draw connectors edrawmax mortgage flowchart

Edit your flowchart's outlook using the desired theme, color combo, and layout. Go to the "Design" tab for these options.

customizing edrawmax mortgage flowchart

Export your mortgage process flowchart. For this, click the "Export" icon. Choose your preferred export format from the dropdown.

export edrawmax mortgage flowchart

Part 4: Benefits of Using Mortgage Loan Process Flow Chart

The mortgage process flowchart offers several benefits to both lenders and borrowers. Some key advantages of using mortgage flowcharts include the following:

Clarity and Understanding

The flowchart provides a visual picture of the entire mortgage process. It breaks down the steps into a logical sequence. Thus, borrowers can understand each stage and the overall process easily.

Structured Approach

The flowchart brings structure to the mortgage process. It ensures that all necessary steps are flowing in a systematic manner. It helps borrowers and lenders stay organized and maintain consistency.

Improved Communication

Mortgage flowcharts serve as a common reference point for borrowers and lenders. They allow negotiation by providing a clear overview of the status of each stage. Improved communication leads to fewer chances of missing critical steps. It also prevents unnecessary delays.

Risk Reduction

Lenders can detect potential pitfalls in the mortgage process. By identifying these areas, they can implement strategies to mitigate risks. Also, they can strengthen those areas, which helps gain more borrowers.

Borrower Empowerment

For borrowers, such flowcharts trigger them to take an active role in the mortgage process. They enable them to understand what to expect at each stage. Also, it prompts them to prepare the necessary documents and information.

Reduced Errors and Rework

By providing a clear roadmap, mortgage flowcharts minimize the chances of errors. They also remove the need for rework because each step promises accuracy. Also, these guides promote accountability among all parties involved in the mortgage process.

Streamlined Training and Onboarding

For new employees in the mortgage industry, these flowcharts serve as a valuable training and onboarding tool. They help quickly grasp the essential steps involved in the mortgage process.


Obtaining a mortgage is a paramount financial venture. It enables individuals to get their dream homeownership. However, the mortgage process can be confusing due to its complexity of stages. Mortgage flowcharts divide the process into definable steps. They make the mortgage more manageable and efficient. From initial preparation to final closing, mortgage flowcharts guide individuals through each stage.

Whether you are a first-time homebuyer or a seasoned real estate investor, using mortgage flowcharts can pave the way to success. This article offered everything necessary about mortgage loan processing and its visual techniques.

Edraw Team
Edraw Team Apr 15, 24
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