1. Loan pre-approval. Pre-approval allows you to search for a home
that you can afford based on your debt, income, and credit.
An application and supporting financial documents must be submitted to your Loan Officer, including pay stubs,
tax returns, and account statements.
2. Property search. Once pre-approved and you know how much home you can afford,
start shopping with your real estate agent!
3. Purchase and sale agreement. When you find the right home, the terms of sale are
negotiated and your agent will present your offer to the seller for acceptance.
4. Appraisal and property inspection. Once the seller accepts your offer,
an appraisal is ordered to identify any discrepancies between the sale price and appraised value.
Properties are also inspected for water and termite damage and other safety hazards.
5. Processor’s and underwriter’s review. A loan processor will review the full file and send all pertinent information
to an underwriter, who will make the final decision to approve a loan.
6. Final loan approval. If you have a good credit score and debt-to-income ratio, your loan will likely be approved.
Keep in mind that there may be financial conditions or property conditions that need to be met before final loan approval.
7. Signing. Final loan and escrow documents will be prepared and signed by you (the buyer) and the seller.
8. Funding. A wire or check for the amount of the loan will be sent to the title company.
9. Close of escrow. Documents that transfer titles are recorded with the county.
10. Confirmation of recording. The title company will authorize the escrow company.