The Homebuying Process: Step by Step

Buying a home involves a lot of people and a lot of paperwork, but the overall path is fairly predictable. When you know what's coming next, the whole thing feels a lot less stressful. Here's how it usually unfolds, from my side of the table.

1. Get clear on your budget

Before you look at listings, it helps to know what monthly payment you're comfortable with. That's not always the same number a lender will approve. I like to start with your goals: how long you plan to stay, how much cash you want to keep in reserve, and what other expenses are coming up.

The mortgage calculator is a good place to experiment, and my article on how much house you can afford goes deeper.

2. Get pre-approved

A pre-approval means a loan professional has reviewed your credit, income, assets and debts and issued a letter stating how much you may qualify for, subject to conditions. In competitive California markets, most sellers and listing agents expect to see one with an offer. Here's how it differs from a pre-qualification.

3. Find an agent and start shopping

A good buyer's agent knows the neighborhoods, the pricing and the local quirks. In Southern California that can include HOAs, Mello-Roos districts, and older homes with permits to check. Share your pre-approval with your agent so you're both working from the same numbers.

4. Make an offer

Your offer will include the price, your down payment, your loan type, and contingencies. Common contingencies cover the inspection, the appraisal and the loan, each with a deadline. Your agent will guide the strategy. I'm happy to talk through how different loan structures may look to a seller.

5. Open escrow

Once your offer is accepted, escrow opens. In much of California, an independent escrow company holds the funds and documents and coordinates the closing. You'll typically deposit your earnest money within a few days.

6. Inspections and appraisal

You'll schedule a home inspection, and possibly others such as termite, roof or sewer line. The lender orders an appraisal to confirm the home's value supports the loan amount. If the appraisal comes in low, there are options, and it's worth talking them through quickly.

7. Underwriting

This is where the lender verifies everything. Expect requests for updated pay stubs, bank statements or letters explaining specific items. Respond quickly and fully; it keeps things moving. Here's more on what happens in underwriting.

8. Final approval and closing disclosure

Once conditions are cleared, you'll receive your Closing Disclosure, which shows your final loan terms and costs. Federal rules generally require you receive it at least three business days before you sign loan documents. Read it carefully and ask me about anything that looks different from what you expected.

9. Sign, fund and record

You'll sign documents with a notary, wire or bring your remaining funds, and the lender funds the loan. Once the deed records with the county, the home is yours.

A few things that help throughout

• Keep your finances steady: no new credit, large purchases or job changes without checking in first. See what not to do before closing.
• Save every document you're sent and keep copies of anything you sign.
• Ask questions early. Small issues are easier to solve when there's time.

Questions?

Every purchase has its own twists. If you'd like to map out your timeline or talk about where to start, contact me, or start your pre-approval whenever you're ready.