What To Expect
A breakdown of the home-buying process to make it simple and surprise free.
1. Pre-qualification
Before you can purchase a home, you need to find out what your buying power is - essentially, what sort of price fits into your budget. Working with your lender, you will gather all of the necessary documents for them to review, and they will then issue a pre-qualification letter. This letter can be provided to a builder or current homeowner showing that you are good for the money the home will cost.
2. Pre-approval
During this stage, a lender has sent your file to underwriting, where it has been credit underwritten. You have now been pre-approved to purchase your future home.
3. Find your home
Now comes the fun part! Find the best home that fits your family and your budget. We’d love for you to start your search here.
4. Home Inspection
Should you wish, this would be the right time to obtain a home inspection by contacting a licensed home inspector.
5. Purchase & sales agreement
Working with your lender, builder, or the current owner, you will come to terms on your offer and submit a contract for consideration. Once all terms are agreed upon, both you and the seller will sign the contract. It will be your job next to get appropriate escrow funds and option money to the title company. Only then will the contract be fully executed and ready to move forward.
6. Finalize loan application
Your lender will likely walk you through the steps needed to finalize your loan application. This will include providing items like paystubs, tax documents, asset reports, and simple personal information, like your drivers license and social security card. A full list of what could be asked for is located here. Once all info is gathered, your lending officer will send the file to underwriting. This step is designed to make sure you are able and qualified to pay for the home you are purchasing. During the underwriting process, your lender will likely ask you to provide additional documents or answer specific questions. It is important to answer all questions and inquiries that your lender may have quickly and accurately in order to keep the process on track.
7. Home appraisal
Once the home is completed, one of the final steps will be to have it appraised. This step determines the value of the property, and is required by lenders in order to close.
8. Final Loan Approval
During this step, your lender will let you know if your loan has been approved. And if it has been approved, you are good to move forward with your purchase.
9. Insurance
Your lender will require you to carry homeowner insurance for your new residence. This is an important step that will require a little legwork on your end. We recommend speaking to an insurance agent that can guide you.
10. Closing disclosure / document prep
The closing disclosure, or CD, will be provided by the title company. It will lay out all of the financial details of your closing, including the sales price, fees, taxes, etc all in line item form. Review this document closely in order to make sure all of the details are correct. Any questions regarding your CD can be answered by the escrow officer at the title company.
11. Closing
This is the actual process of signing all of the documents, funding the transaction, and transferring ownership of the home from the builder or previous owner to you. Your closing will likely happen at the title company, and will involve signing all of the documents required to purchase your home. When your home has funded, it means that the title company has received the funds to pay for your home, either from you or from your lending institution. You will receive your keys only after your home is funded. The title company takes care of the transfer of ownership as a part of your transaction.
12. Move in!
Schedule the movers, it’s time to be welcomed into your new home!
