The Home Buying Process

1. Application Review

The lender reviews the information you submitted such as income, employment, assets, and credit history. They verify documentation like W2s, tax returns, bank statements, and pay stubs.

2. Loan Consultation meeting

The loan officer will schedule a meeting in person or via phone to go over the loan options and price ranges to meet your monthly payment goal.

3. Credit/Employment

4. Select a Realtor

5. Under contract

Provide a copy of your contract to your lender.  They will reach out with program and interest rates to lock in.

6. Disclosures 

Within three business days, the lender sends a Loan Estimate and disclosures to be esigned electronically. This document outlines the estimated interest rate, monthly payment, and closing costs.

7. Processing

A loan processor gathers and organizes your file. They may request additional documents or clarification during this stage.

8. Appraisal Ordered

The lender orders a home appraisal to determine the market value of the property. This ensures the home is worth the purchase price.

9. Underwriting

The file is reviewed by an underwriter who evaluates risk and ensures the loan meets lending guidelines. The underwriter may issue conditions, which are additional items needed before final approval.

10. Conditional Approval

If everything looks good, the loan receives conditional approval. The borrower must satisfy any remaining conditions such as updated bank statements, explanations, or verification of employment.

11. Clear to Close

Once all conditions are met, the lender issues a Clear to Close. This means the loan is fully approved and ready for closing.

12. Closing Disclosure

At least three business days before closing, the borrower receives the Closing Disclosure, which shows the final loan terms and closing costs.

13. Closing Day

The borrower signs the final documents, pays closing costs and down payment, and the loan funds. After funding and recording, the buyer receives the keys to the home.