Now that you have begun the process of having financial backing from the bank, it is time to start looking for your home. In today’s society, it isn’t uncommon for someone to start their search on the internet with websites like Zillow, Trulia, Realtor.com, and more. Although these websites can be helpful when first starting your search for houses – they also shouldn’t be the only tool in your home buyer’s toolbelt.

This is where your realtor comes in as an effective and resourceful tool that is working on your behalf. Realtors always have the most up-to-date information on the latest listings and even on homes that are coming onto the market in the future. Realtors can also help you navigate the home buying process and negotiate for you and your family to get the best price on a home you love.

When you find the home you want, your next step is to put an offer in on the house. When your realtor submits the offer it will often have contingencies. Contingencies are important because it protects you and your earnest money (money that is applied to your down payment at closing to reassure the seller of your purchase). Common contingencies include:

– Appraisals must come in close to the loan amount, not lower
– Home inspections do not find major issues with the property
– Borrowers obtain funding (final loan approval)

If both parties, the seller and you, agree to the terms of the agreement then a purchase agreement is signed by both parties. This agreement is binding and is the final step before putting in your mortgage application.

Some documents are required in order to have your loan taken through underwriting. Some will have already been given to the bank through some of the prior documents you used for the pre-approval (e.g. employer’s address, gross income, etc), and others will have to be provided based on your specific loan requirements.

At this stage of the home loan process, you will need to provide supporting documents for Employment, Income, Assets, Debts, Property Information (the home you want to buy), Financial Blemishes, Mortgage Type, and Specialty Documents (if you’re applying for a specific mortgage). These documents are then compiled to produce a Loan Estimate.

A Loan Estimate breaks down the total costs and all of the terms of your loan. You are neither approved or denied at this point in the process so it’s important to stay on top of the process and be prepared when you are applying for a mortgage.

Once you have submitted your application and all the documentation required – it will make its way through the chain of loan processing and underwriting. Loan processors request and order the information needed for the underwriter to review. Information requested by the loan processor includes property appraisal, document verification, property inspection (if required), title search, and anything else that wasn’t verified in pre-approval.

After packaging all of that information, they send the loan file to the underwriter. The underwriter is who reviews your home loan application and gives the decision on your approval or denial for a home loan. They can also give approval with conditions (e.g. explanation for late payments or collections).

If your application is approved you will still have some final tasks before you get the keys to your new home.

Once you’ve been approved for your home loan, you, your realtor, and your loan officer will have some work to do.

Sometime after your loan has been approved, but before you close on your home – you’ll lock in your interest rate. Interest rates fluctuate daily so it is important to listen to your loan officer about when the best time will be to lock it in.

The final stage before closing is Pre-Closing. This is where your lender, your realtor, and you ensure that all the final boxes are checked, contingencies are met, and the title insurance is ordered. Once all conditions are met, your closing meeting will be scheduled.

Loan documents that package everything together are printed out and sent to the title company (or an attorney’s office) where you will eventually have your closing meeting. During that time you’ll receive a Closing Disclosure that tells you how much everything is going to really cost (the final numbers), similar to the Loan Estimate you received before. Once you have the Closing Disclosure you have three days to review it before closing. This allows you to change the APR, the type of loan, and add a pre-payment penalty if required.

Prior to Closing, you have the right to walk through the property within a 24 hr period. This allows you to double check the contingencies are completed (if there were any) and that the seller has removed their belongings.

The Closing Meeting is the biggest part of purchasing a home! This is where you will sign a ton of documents and finalize the deal between you and the seller and lender. Make sure you bring two forms of ID with you and a checkbook for any small differences you may have to cover.