Home Buying Process

The process of buying a home is a complicated process involving many steps, persons performing different tasks, and a extensive number of documents. Below are the key steps in the home buying process.

Initial Consultation with Realtor

Learn about your real estate advisor and how he helps you achieve your real estate goals.
Learn about property buying documents, home buying costs, the current real estate market.
Determine property requirements
Discuss communities and schools
Discuss your financial qualifications
Discuss your time frame for purchase
Calculate your estimated home buying costs
Create your custom home search within the Multiple Listing Service
Answer your questions
Provide essential home buying information for your reference

Loan Qualification

Buyer discusses financials with loan officer
Loan officer orders buyer's credit report
Buyer obtains loan pre-approval letter

Home Search

Establish price range
Perform property search
Select best property candidates

Home Selection

Buyer visits best property candidates
Buyer selects property on which to make offer

Write Offer

Review the items needed to make an offer
Review property comparables data
Discuss strategies with agent
Write offer using purchase agreement

Submit Offer

Buyer’s agent submits offer to seller's agent.

Seller’s Response to Offer

Seller either accepts the buyer’s offer, rejects the offer, or submits a counter offer.

Buyer’s Response to Counter Offer

Buyer either accepts the seller’s counter offer, rejects the counter offer, or submits another counter offer.

Acceptance

Seller and buyer agree and sign agreement (escrow time period begins)

Open Escrow

Purchase agreement is sent to escrow
Buyer gives escrow company deposit check
Buyer's check is deposited into escrow account

Property Inspections

Escrow and Title

Financing

Disclosures (7 days)

Buyer receives Transfer Disclosures, Natural Hazards Report from seller

Preliminary Title Report

Buyer receives, reviews and accepts Preliminary Title Report

Physical Inspection

Buyer has physical inspection performed
Buyer and agent review Property Inspection Report
Request for Repairs submitted to seller

Pest Inspection

Seller has pest inspection performed
Buyer reviews Termite Inspection Report

Inspection Contingency Removal (Day 17)

Buyer sends Inspection Contingency Removal

Repairs

Seller fixes items on Request for Repairs
Seller fixes items on Pest Inspection Report and provides Termite Clearance

Homeowner Insurance

Shop for homeowner insurance
Select insurance company and coverage
Insurance company provides insurance binder to escrow and lender

Final Walkthrough

Buyer performs final property walkthrough
Verification of repairs

Prepare Escrow Documents

Escrow prepares Escrow Instructions and sends them to buyer and seller and their agents
Escrow orders Preliminary Title Report
Escrow orders homeowner association documents (if applicable)

Sign Escrow Documents

Buyer signs escrow documents, transfer documents, and seller signs and notarizes Grant Deed

Title Search

Title company performs title search
Title company prepares Preliminary Title Report and it is sent to buyer and his agent

Research and Analysis

Escrow orders existing payoffs of any recorded loans, receives copy of title report and reviews contents, checks for status of taxes paid or owed, reviews homeowner dues if applicable, checks for any leased equipment, clears any title problems.

Pre-Closing Activities

Escrow prepares estimated Settlement Statement (HUD 1) for both buyers and sellers.
Escrow prepares all necessary closing documents in addition to closing loan documents.
Escrow sets appointment for the buyer and seller to sign their respective documents.
Sends all signed documents to lender for a final review.
Escrow receives all funds from the buyer as required.
Escrow sends documents to the County Recorder's Office to be recorded.
Escrow disburses funds per the purchase agreement.

Estimated Settlement Statement

Buyer reviews and approves Estimated Settlement Statement.

Close of Escrow (COE)

Escrow officer does final settlement
Buyer gets keys to home; seller gets their proceeds

Record and Transfer Title

Grant deed is recorded at County Recorder’s Office
Buyer's deed of trust is recorded at County Recorder’s Office

Post Close of Escrow

Buyer receives final Settlement Statement and/or HUD-1 document
Buyer receives check for any overage paid

Loan Application

Buyer fills Loan Application with loan officer

Loan Processing

Buyer provides documentation to loan officer
Loan application is processed by processor or loan officer
Loan officer orders title, appraisal, credit report, verification of employment, verification of deposits, etc.

Property Appraisal

Property appraisal is performed

Loan Package Submitted

Completed loan package is sent to lender's underwriter for loan approval

Preliminary Loan Approval

Lender approves loan with conditions

Loan Contingency Removal (Day 21)

Buyer sends Loan Contingency Removal

Final Loan Approval

Conditions met and lender approves loan

Loan Documents

Closing loan documents prepared by lender and sent to escrow company
Lender sends loan documents to escrow
Sign loan documents and closing cost statements

Loan Funding

Lender wires funds to escrow
Buyer wires down payment funds to escrow