Home buying loan process

When buying a home, the 1st thing you need to do is talk to a lender to get approved.   In today’s market, a seller won’t even consider an offer from a potential buyer unless they have confirmation from a lender that they can actually buy the home.

Here are the basic steps:

#1 – Pre-Approval

Initial phone conversation with your loan officer to determine source of down payment, income, debts, credit report.  IMPORTANT  Once you are Pre Approved – READ the  10 Commandments to buying a Home

#2 – Document Gathering

You will need to gather proof of income and assets.  Lender issues the Pre-approval letter

#3 – Shop for a Home

Now we know the amount you can afford, so let’s go shopping for a home

#4 – Offer Acceptance

Once we find a home and have an accepted offer, the loan application will be created and emailed to you for review and signature.

#5 – Loan Processing

We open escrow and your lender will get to work and submit your file to the “processor”, you will asked for additional documents, the lender will order appraisal, obtain title documents from escrow.  It’s important that you stay in contact with the lender during this time and provide any requesting documents or items they in a timely manner.

#6 – Conditional Approval

Your file will be issued an approval with conditions, usually updated pay stubs, bank statements, etc.

#7 – Doc and Funding

Once the conditional approval documents have been received, the file will issued for loan documents and the doc’s sent to escrow.  Escrow will contact you to set time and date to sign your loan docs.   Lenders will receive the loan documents back and will find the loan usually within 24-48 hours.

#8 – Close Escrow and get your Keys!