Are you thinking of buying a home, but not sure where to begin? Talking with a lender is one of the first steeps of action that needs to be taken to start the home buying process. They will be able to provide you with helpful information, tell you how much you can afford and work with you to find the best loan program to fit your needs.
We asked one of our local lenders to provide us with a step by step guide on how the process works from pre-qualification to the clear to close!
Home Buying Process – An Overview
Pre-qualification – Meet with a Loan Officer so you know your budget for a home. (More on this step to come!)
Meet with a Real Estate Agent – Discuss with your agent the type of home you’re looking for and within your pre-qualification budget. Start shopping!
Negotiating Purchase Price – Once you have found The Home, submit an offer on the home with the help of your agent. Once all parties agree to the price and terms you are officially under contract!
Earnest Money is cashed – To show the sellers you are serious about buying the home, you must put a deposit down. This earnest money is cashed and held by a 3 rd party until closing day.*
Deadlines & Inspection – You will hire different inspectors to inspect the home to ensure the home is to your satisfaction. Each needs to be done within the deadlines laid out in the contract.
Processing Your Loan – Once under contract on a home, your Loan Officer will collect supporting documentation from you to verify your approval status.
Loan Estimate & Disclosures – Information pertaining to the details on your contract are entered and a Loan Estimate and loan disclosures are sent to you.
Underwriting – Once all necessary documentation is collected from you, your file is sent to an underwriter to ensure you satisfy the loan guideline and requirements.
Final Loan Approval – If no additional info is required in underwriting review, your loan is approved and given “Clear to Close” status.
Closing Disclosure – Closing Disclosure shows the final terms of the loan, costs and remaining to bring to closing. This will be issued no less than 3 days prior to closing.
Closing Documents – Documents sent to the title company in preparation for closing day.
Money for Closing – You will bring either a cashier’s check or set up a wire for remaining funds needed.
Closing Appointment – Meet at the title company to sign the Real Estate & Mortgage documents. Bring
your photo ID to this appointment!
You are now a HOMEOWNER!
*These funds are applied to your required down-payment category and reduce the amount you need to
bring on closing day.