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-2’s, pay stubs, statements from banks, credit unions, securities, retirement plans where you hold money.

STEP 2 - Lender Processes your Loan:

  • Orders credit report.
  • Inputs all verified data in loan system.
  • Receives loan approval.
  • Sends preapproval letter to homebuyer.

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 homeowner’s insurance agent & arrange to have the home insured as of the close of escrow date.

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 borrower’s 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 review).

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:

  1. The lender receives the papers back from the title company and reviews them.
  2. The lender “funds” the loan (writes a check to pay-off the seller).
  3. The Title company records the Deed at the county assessor’s office.