The Homebuying Process
STEP 1 - Your Loan gets Pre-Approved so you
can make your offer through your Realtor:
- Homebuyer provides information to lender for credit report.
Provide W-2s, pay stubs, statements
from banks, credit unions, securities, retirement plans where
you hold money.
STEP 2 - Lender Processes your Loan:
STEP 3 - You Search for Property, find the
home that fits your needs, get your offer accepted:
Have a home inspection
Negotiate repairs, if any
Contact a homeowners insurance agent
& arrange to have the home insured as of the close of
STEP 4 - The Lender Orders:
Preliminary Title report.
Appraisal of the property (after you have
had a satisfactory home inspection).
An insurance binder from the borrowers
insurance agent, effective with their closing date.
Sends loan application papers to homebuyers.
STEP 5 - The Lender Underwrites
the Loan (issues full loan approval):
The fully processed loan, including appraisal
& title report, is reviewed by the Underwriting Department.
Full loan approval is made (sometimes there
are additional conditions to satisfy, based on Underwriter
STEP 6 - Your Closing Documents Are prepared
& sent to your Title company:
The lender prepares all of the documents you
will need to sign at the title company to close your loan.
Those documents are then sent to your escrow
officer at the title company where you will sign them.
STEP 7 - You Sign the Final Loan Papers AT
YOUR TITLE COMPANY:
Your escrow officer will do their own work-up
on your file, prepares a settlement statement & calls
you into their office, to sign the final documents a few days
before the official closing and recording date.
Your escrow officer will tell you exactly
how much money you will need to bring to closing (should be
close to the good faith estimate).
STEP 8 - You get the Keys !! AFTER:
The lender receives the papers back from the
title company and reviews them.
The lender funds the loan (writes
a check to pay-off the seller).
The Title company records the Deed at the
county assessors office.