The Home Buying Process

Purchasing a home is exciting, but there are many steps involved before you get your new set of keys. Below, I will breakdown some of the steps to have a better understanding of the home buying process.  

Pre-Qualification

You will start by getting pre-qualified for a mortgage loan. This involves assessing your financial situation and determining the loan amount you may be eligible for. You will need to provide documentation in order to receive your pre-qualification letter. This can consist of proof of income and assets such as paystubs, W2's and bank statements.

Realtor

Now that you have a pre-qualification letter, you can meet with a realtor to discuss your home search. They will meet with you and come up with a game plan to search and view homes you are interested in.

Contract Acceptance

Once you find your dream home, your realtor will research the area and assist you with submitting an offer to the seller. Once the seller accepts your offer, a purchase contract is executed, outlining the terms and conditions of the sale. This will include your close of escrow date, escrow money, and any other items you negotiated in the contract.

Open Escrow with title.

The buyer typically deposits earnest money into an escrow account. This money is held by the title company, demonstrating their commitment to purchase the home. At this time, the purchase contract is also given to the lender to begin working on the financing part of your deal.

Inspections and Appraisal

The lender will typically require an appraisal to determine the value of the property. Additionally, you may opt for home inspections, such as roof, plumbing, or pest inspections to ensure the property is in good condition.

Processing and Underwriting

Once an offer has been accepted, you are able to lock in the interest rate and finalize your loan terms. The lender will review your financial documents, verify the property's information, and assess your creditworthiness to determine you meet the lender's criteria. Once the underwriter has approved your file you will receive a Clear to Close from the lender. The lender will draw up your loan documents and prepare to send them to the title company for signing.

Closing

Once approved by the lender, the title company will step in and schedule a closing date. During the closing, you'll sign all the necessary loan documents. At this time, you will also need to provide title your funds for the down payment and closing costs. Title is responsible for recording the deed with the county. The recording transfers the home ownership from the seller to you, officially making you the new home owner.  

Hopefully, you have a better understanding of the home buying process. If you have any additional questions, please feel free to reach out to me.