Roadmap for the Home Buying Process
Goals for purchase, income, assets, debts, and credit are discussed to estimate a price range and loan terms that are best for the you. Not sure which type of loan you are supposed to use? No problem! A good loan officer will help you explore all options and narrow it down to what works best for you. More on that on “Which Loan is For Me?”
Loan application completed; credit history, income, employment, bank accounts verified and evaluated by underwriting.
Shop for a Home
Pre-approval letter in-hand and price range determined, you are now ready to start looking at homes!
We found the home! We will discuss terms for your offer including seller credits, closing date, etc. to ensure you are comfortable with the terms. There are many negotiable terms in a real estate contract, beyond just a sales price. Curious to know what those are? Bookmark my page on “Negotiable Aspects of an Offer”
Earnest Money/Option fee check is due immediately. I will help you coordinate delivery of this to the title company. Home inspection completed, paid for by buyer. Requests for any credit/repairs negotiated. Loan terms finalized, rate locked.
There are several reports that are needed throughout the process. An appraisal will be ordered by lender, and paid for by you at the time it is ordered. Title work will be ordered as well as an HOA resale package, if needed. If required, a new survey will also be ordered and this is the time that Buyer shops for homeowner’s insurance. When these reports are received, we will review together and discuss any questions or concerns you may have.
Submit for Final Approval
Purchase contract, appraisal, title commitment, insurance and any remaining loan conditions are sent to underwriting for review. Once fully underwritten the underwriter gives a “clear to close” status.
Closing Disclosure/Loan Documents
After underwriting “clears” all prior conditions, the closing disclosure will be sent. This is the financial statement of the transaction. This first copy is a Preliminary CD, which means it is a rough draft. Once received you will sign this version of the CD and the timeline begins for the 3-day review period required by law. The title company and lender will work together to balance the figures and give you a Settlement Statement or Final CD. After the review period the loan docs are drawn & delivered to escrow.
Prepared by title and lender, this discloses all the final numbers including the buyer’s cash due for closing. Once completed, lender or title company will contact you with final figures. I typically schedule your closing appointment 1 week out from closing, at your preferred time of day. You should confirm the title company’s wiring instructions with them by phone before initiating the wire for closing funds.
You will bring a valid id and sign closing documents at the title company. I will attend closing with you as an encouragement and to answer any questions that arise. If you have a spouse, they will have a few documents to sign as well, even if they are not on the loan.
Final Lender Review & Funding
Signed loan docs returned to lender for review. Final verbal verification of employment for buyers done. All funding conditions are reviewed & cleared for closing. The Lender wires funds to title and gives funding authorization to the escrow agent which allows them to disburse funds. Congratulations! You are now Closed & Funded and you are officially a Texas Home Owner!! Title pays all parties listed on settlement statement and records documents with county clerk.