Once you have decided that you want to achieve the American dream owning- your own home- you should know where to start.  The chart below outlines the loan and home purchase process starting with a pre-qualification, prior to writing an offer.

Step 1:  Pre-Qualification
This can be done over the phone in just 5 – 10 minutes.  I will ask you a few questions relating to employment, income, assets, monthly payments, auto loans, credit cards student loans etc) and credit history.  With this information, I can usually give you a range of loan amount that you can qualify for and depending on your down payment, what price range you will be in.

Step 2:  Pre-Approval 
Getting pre-approved will help avoid problems or delays throughout the rest of your home purchase process.  A pre-approval can be done over the phone, fax, or in person.  This is different than a pre-qualification because here we run a credit report and will submit your file to an underwriter who will give us formal written approval based on the purchase price and loan amount we request.  This process usually takes 24 – 48 hours.  Once your approval is issued, I will be able to tell you what documentation (if any) you will need to provide to verify your income, assets or down payment.

Step 3:  Finding a Realtor
Did you know that when you are purchasing a home the seller pays the Realtor commission?  So in my opinion, there is no reason not to have a realtor representing you throughout your purchase transaction.  A Realtor will also help you find a home, look up statistics on recent sales in the area to help you negotiate price, assist in negotiating any repairs, and assisting you through the settlement process. 

Step 4:  Writing an offer:
Once you have negotiated a price and put a deposit on the home (Earnest Money) your realtor will open up an escrow account with a local title company (seller choice).   This is generally when you will want to lock in the interest rate on your loan. 

Step 5:  Home Inspection
You can choose to have a professional home inspector look over every major part of a home and write up a report that judges the home’s quality and condition.  Your realtor may be able to give you recommendations for home inspectors in the area and can assist you in negotiating with the seller any repairs that may need to be made as a result of the home inspection. 

Step 6:  Appraisal
Once the home inspection is done and repairs have been negotiated, or if you have chosen not to have a professional home inspection, I will order an appraisal of the home.  This report will tell us if the home is worth what you have agreed to pay for it and is generally used for lending purposes. 

Step 7:  Everyone Ready?
This is when we make sure that everything has been done and is in order.  At this time you will also need to provide me with information on who you will be using for your home owners (fire) insurance.  I would be happy to give you a recommendation on this.

Step 8:  Signing & Funds Exchange
About 2-3 days prior to the closing date you will need to go in to the escrow company and sign your loan paperwork.  This is also when you will be bringing in a cashier’s check for the remainder of the down payment and closing costs on your loan. 

Step 9:  Recording & Keys
On the scheduled closing date, the escrow company will record the documents with the county to put you in title to the property and afterwards, you will be given keys to your new home.  Congratulations!