Steps to Becoming a Homeowner

Steps to Becoming a Homeowner












Making the decision to purchase a home is a big step! Our team understands the mortgage process may be overwhelming at times and we’re glad to be here to help you navigate through this important life change. Discover below the ins and outs of the mortgage lending process.


Step 1: Buyer Consult

A Realtor may be one of the first housing professionals you meet as a prospective home buyer. A real estate agent will be with you for the majority of your home buying journey and will help you find the perfect home.


Step 2: Establish Search Criteria

Discuss with your Realtor the type of home you are looking for including style, price and location.


Step 3: Getting Pre-Selected

The best way to know how much you can actually spend on a home is to receive a pre-selection for a mortgage before you start shopping for a house. This step involves pulling credit, verification of employment, etc. While not required, a pre-selection may have the upper hand in multiple offer situations you may find common in a competitive buying environment.


Step 4: Search for Homes

Your real estate agent will assist you in scheduling showings and help you find the perfect home.


Step 5: Make an Offer

Your Realtor will prepare an offer based on the price and terms you have selected. Once the offer has been accepted, an earnest money deposit is collected within 24 hours. This money is paid in-advance and is applied to your total closing costs once proof of funds has been verified.


Step 6: Under Contract

You and the seller have agreed to the price and terms! The earnest money deposit is collected by your real estate agent and held in escrow until closing.


Step 7: Schedule a Home Inspection

You have a choice if you would like to order a home inspection at this time. A home inspection should be performed by an inspector who will educate you and provide details on the home’s condition for existing and potential problems. Once scheduled, a home inspection may take up to 2 hours to complete a report with photos. Once completed, your realtor will prepare a repairs addendum if applicable.


Step 8: Apply for a Mortgage Loan

It’s time to make a formal loan application. Loan disclosures are sent for electronic signature. You must provide documents to support your income, assets and other pertinent information required for the loan.


Step 9: Appraisal Ordered 

After you sign the loan disclosures and give the intent to continue, the appraisal is ordered. Normally your agent will let your lender know when to place the request. At that time, you must pay for the appraisal and credit report. A copy of the appraisal report is always provided to the buyer.


Step 10: Choose Attorney

A title company or attorney typically acts as an independent third party to facilitate the closing. A title company will conduct a title search to ensure you will be the legal owner of the property and reveal any mortgages, lien judgements, unpaid taxes outstanding on the property and details any existing restrictions, easements or leases that affect the property.


Step 11: Closing Procedures

As you finalize your loan a Closing Disclosure (CD) will be issued. A CD is a form that gives you finalized details about your mortgage loan including loan terms, projected monthly payments and the amount you will need to pay in fees and other closing costs. When you receive the CD, sign it as soon as possible to avoid any delays in closing. Your Realtor will schedule a date and time of closing and a final walk-through of the home.


Step 12: Closing Day

Congratulations, it’s time to get your new keys! Don’t forget your driver’s license and your funds for closing. You will sign all the final disclosures, note and mortgage. Our team will be there with your closing agent to answer any questions. Once the documents are signed, the keys will be yours!


If you feel you are ready to begin the home buying process, let our team help you determine the best way to move forward. Contact our team of local experts today!