The Home Buying Process:
From Pre-Approval To Closing
Following the offer, negotiations, and signing of the contract- the bulk of the mortgage process begins. Obtaining a mortgage involves multiple steps and it can be hard to keep track of everything, so I've created a step by step tracker to help keep you informed along the way. If you ever have any questions, let’s jump on a call – I'm always here to help!
Step One: Obtain your pre approval so you’re knowledgeable in what you can afford. This gives you an idea on what you would look for based on your budget and goals. At this time your Loan Officer will collect your initial documents and loan application so you can review your buying power to ensure you’re getting all the information you need to proceed with your new home purchase.
Step Two: Now that you’re under contract, it’s time for the home inspection and to order your appraisal. Your processor will send you your initial loan disclosures so you can review all of the information you need to know about your new mortgage. Once they’ve been signed your appraisal will be ordered; in the meantime your real estate agent will work with you to schedule your home inspection. (Please note the appraisal is different from a home inspection. The appraisal tells us the market value of your home, while the home inspection tells you the condition your home is in).
Step Three: It’s time for underwriting! Your processor will submit your loan for the initial underwriting review. This gives us an idea on what conditions need to be cleared prior to your final approval.
Step Four: Your loan has been conditionally approved! Your processor will work with you to obtain necessary items they need from you and 3rd party vendors.
Step Five: During your loan process, you will receive a copy of what’s called “The Closing Disclosure”. This is the important document that begins the mandatory 3 day waiting period before we can close, after it’s been signed. This gives you a better idea on what your final costs will be. This is important to thoroughly review and sign as soon as it’s been issued, to ensure your loan progresses on time to meet your closing date.
Step Six: Congratulations, we now have the Clear to Close aka Final Loan Approval! This means the underwriter has cleared all conditions on your loan and you’re officially one step closer to getting the keys to your brand new home!
Step Seven: Now that you’re Clear to Close, the lender will work with your attorney to balance your final numbers and those will be provided to you immediately upon receipt. When wiring closing funds, it's important to obtain your wiring instructions directly from your attorney, and remember to verify the instructions one more time prior to sending your closing funds.
Step Eight: Congratulations it’s Closing Day! Now it’s time to head to the attorney’s office so you can sign your final documents and get the keys to your brand new home. Once you’ve signed all of your documents and the keys are in your hand, you’re officially a homeowner!