Sounds like: “I've never bought a home.”
What are the steps to getting a home loan?
There are eight. The first two happen before you shop: you apply and get pre-approved, so you know what you can spend. Once the seller says yes, most purchases close in about thirty days. Here's what happens at each step, and when.
The eight steps
- Application Before you shop
- Pre-approval Before you shop
- Offer accepted Day 1
- Appraisal Day 7 to 14
- Underwriting Day 10 to 14
- Clear to close Day 17 to 21
- Signing Day 24 to 28
- Escrow closes Day 28 to 30
Step 1 of 8
Application
Apply online in about 15 minutes, or on a call.
When: Before you shop
Apply online in about 15 minutes, or on a call. Do what you can. Your loan officer calls to fill in the blanks and tells you which papers to send.
You get a Loan Estimate within three business days of applying.
Tip: talking doesn’t affect your credit, and your loan officer tells you before any credit check.
Step 2 of 8
Pre-approval
Know what you can spend.
When: Before you shop
The lender checks your credit, income and savings, and gives you a letter that says what you can spend.
You shop for homes in that range, and your agent sends the letter with your offer.
Tip: sellers take a pre-approval more seriously than a quick pre-qualification.
Step 3 of 8
Offer accepted
The seller says yes. The clock starts.
When: Day 1
The seller signs your offer, escrow opens and the clock starts.
Send the signed contract to your loan officer the same day.
Tip: ask your agent which dates in the contract matter for your loan.
Step 4 of 8
Appraisal
An expert checks the home’s value.
When: Day 7 to 14
An appraiser visits the home and reports its value to the lender.
You usually don’t need to do anything. The agents handle access to the home.
Tip: if the value comes in low, your loan officer and agent walk you through your choices.
Step 5 of 8
Underwriting
The lender reviews it all. Don’t open new credit.
When: Day 10 to 14
An underwriter checks everything in your file, including the appraisal.
Answer requests for papers quickly, so nothing waits on you.
Tip: hold off on new credit cards, car loans and big purchases until you close.
Step 6 of 8
Clear to close
Your loan is fully approved.
When: Day 17 to 21
Your loan is fully approved, and the final numbers are set.
You get a Closing Disclosure at least three business days before signing, so compare it with your Loan Estimate.
Tip: ask your loan officer about anything that changed.
Step 7 of 8
Signing
You sign the final papers. A notary comes to you.
When: Day 24 to 28
Everything before this is signed online. For the final papers, escrow sends a mobile notary to you.
Bring a photo ID, and send your cash to close the way escrow tells you.
Tip: before you wire money, call escrow at a number you already know to confirm the instructions.
Step 8 of 8
Escrow closes
The money moves. The home is yours.
When: Day 28 to 30
The money moves and the sale is recorded, so the home is yours.
Your agent tells you when you get the keys.
Tip: keep your closing papers somewhere safe, and ask when your first payment is due.
Days shown are typical, not promised. Appraisal, underwriting and closing times vary by loan, property and lender. Approval to shop depends on the property and final underwriting. You get a Loan Estimate within three business days of applying and a Closing Disclosure at least three business days before signing. Not a commitment to lend.
Talk to a loan officer
Call or email a licensed loan officer.
The application takes about 15 minutes, on the secure site we use. Do what you can, and your loan officer calls to fill in the rest.
Prefer to meet in person? Our main office is in Tustin, by appointment.