10 Steps to Homeownership

  1. Loan Pre-Approval. Having a pre-approval allows you to search for a home that you can afford based on your credit, income, and assets. An application and other financial documents must be submitted to your Loan Officer, including pay stubs, tax returns, and account statements.
  2. Home Search. Once pre-approved, you can start shopping with your real estate agent! When you decide on the right home for you, terms of the sale are negotiated and your agent presents your offer to the seller.
  3. Formal Loan Application. After the seller accepts your offer you will formally apply for home financing and select the ideal loan product to meet your needs.
  4. Appraisal and home inspection. As your application is being processed, 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 reviews the entire loan file and sends all pertinent information to an underwriter who makes the final decision to approve the 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. Closing. Final loan and escrow documents are prepared and signed by you (the buyer) and seller.
  8. Funding. A wire or check for the amount of the loan is 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 authorizes the escrow company, or closing agent, to draft a check to the seller.