The Home Buying Process, One Step at a Time

This information is being provided to familiarize you with the steps necessary to purchase a home. I hope that this document will help you to ask questions regarding the transaction and to understand where you are in the process at any given time.

Starting Your House Hunt

Consultation with agent to discuss agency and analyze home buying needs.

Start the preapproval process with your loan officer.

• Mortgage application
• Most current paycheck stub
• Set up Multiple Listing Service auto search.

Complete loan approval process

• Lender will need
• Verification of income
• Credit report
• Past 2 years of taxes
• Miscellaneous documentation to substantiate debt and savings
• Discuss preapproval amount and adjust search parameters as necessary.

Select and view properties.

• Write offer to purchase.

Your Agent will need:

• Discuss terms of offer to purchase.
• Provide preapproval letter from lender (includes lender contact information)
• Proof of funds is in the form of a financial statement showing the down payment money. It must be dated, display the name of the purchaser and money available.

The Escrow Process

Acceptance of your offer: 

The seller’s agent sends back a seller signed contract to the buyer’s agent.

 Escrow opened by the buyer's agent.

• Signed contract sent to escrow.
• Buyers’ earnest money deposit sent to escrow.
• Signed contract sent to lender.
• Appraisal Ordered by buyer’s lender.

Inspection period 

• Pest inspection
• Home inspection
• Other inspections as indicated by location or condition of property

 Review Disclosures

• Preliminary title report. (Escrow company’s offer to provide title insurance subject to conditions as outlined in report)
• Natural Hazard Disclosure.
• Seller’s disclosures (vary depending on type of sale)
• Agent Visual Inspection disclosures
• Homeowners’ Association documents (if applicable)

Negotiate or Remove Inspection Contingency. 

(Choices below)

• Accept property in its current “as is” condition.
• Requests that sellers make repairs or reduce the price.
• Cancel escrow based upon inspections results.

Lender’s underwriting process. (Lender will give…)

• Loan approval
• Loan approval with conditions
• Rejection

It is important that buyers keep finances stable during the home buying process.

• Don't purchase any "big ticket items" such as appliances or new cars.
• Stay employed in current job.
• Don't move money into or out of accounts without checking in with lender prior to transfer.

Loan Contingency Removal

• Your agent should ask your lender for written confirmation that it is time to remove your loan contingency.
• Loan docs are sent to title
• The buyer is provided with a Closing Disclosure Statement and told how much money to bring to escrow.
• The escrow officer sets up an appointment to sign loan and escrow documentation.
• Everyone signing documents will need a valid and current photo ID.
• The loan funds and the Property’s title is transferred and recorded at the county recorder’s office. (same day or one day apart)

 Buyer takes possession of property! It's a long process but well worth the work.