1. Obtain Loan Pre-approval Before You  Begin House Hunting - A pre-approval lets you know the amount of the loan you will qualify for and the type of loan that best meets your needs. A pre-approval will also strengthen your bargaining position with the seller.

2. Work with a Real Estate Agent - Your agent will help you determine your needs, select an area, and understand the buying process.

3. Find the Right Home, and Make an Offer - Your real estate agent will present your offer to the seller who will either accept, counter, or reject it. Your offer contract will specify contingencies such as financing and home inspection, the downpayment, and settlement time frame. You are generally required to deposit a portion of your downpayment with your contract.

4. Your Offer is Accepted - Your offer, now accepted, becomes a contract. At this time, order a home inspection, the title search, and survey through the settlement agent.

5. Lender Orders Appraisal and Credit Report - An appraisal is a formal written estimate of the home’s current market value and  must support the  price.

6. Obtain Loan Approval - Once the credit report, appraisal, and all application documents are received, the lender can submit the loan for approval. The loan decision is made by either an underwriter, loan committee, or an investor. This process usually takes 2 to 5 days, but if independent confirmation of any facet of your application is required, this process can take longer.

7. Settlement Preparations- Upon loan approval you must prepare for settlement. Buy a homeowner’s insurance policy, a termite report, contact utility companies, and arrange a pre-settlement walk-through.

8. Your Loan Is Approved – Before settlement, a number of important steps need to be completed. Your real estate Agent will help you in this regard.

9. Buy Your Homeowner's Insurance Policy - Your insurance must cover the loan amount. You must provide your lender with the original copy of the insurance policy and a paid receipt one to two weeks before closing.

10. Arrange for Inspections - All lenders will require a termite inspection to assure the property is free of  insects. A well & septic inspection is required if the property is serviced by a well or septic field. New construction properties must be inspected by the municipality for code compliance.  The property appraiser expects that the house has been completed according to the plans.

11. Settlement Agent Prepares Title Work - The settlement attorney, escrow/closing agent, title company or escrow company will prepare a report on the title to the property. In addition, they will procure a location survey to assure that property lines have not been violated.  The lender must receive all closing documents no less than three to five days prior to closing.

12. Your Closing Costs - In addition to the downpayment, you will need to pay for closing costs.  In  case of a "no cost" loan, the lender or the broker will cover your costs in exchange for a higher interest rate. Weigh this option carefully before making a decision. There are 4 basic components of closing costs:

1. "Hard" Closing Costs:  These are transaction costs borne by the purchaser which generally will not vary.  These charges include title insurance and title search, survey, document preparation, appraisal and credit report charges, notary and courier charges, municipal recording charges, title insurance, and termite inspection.

2. State and Local Taxes:  Taxes charged when a property changes ownership.

3. Loan Origination & Discount Fees:  Commonly known as points, these fees will vary depending on your interest rate.

4. Prepaid Items:  Fees paid on the closing date to cover future costs.  Pro-rated real estate taxes, homeowner's and flood insurance, PMI, and interim interest are among the most common prepaid items. To ensure that their investment is secure, Lenders may require you to deposit a sum of money in an escrow account to prepay recurring costs, such as:
(1) your first six months of property taxes
(2) your first two months of hazard insurance
(3) your first two months of mortgage insurance

If required, the lender will also collect the interest you owe for the period between the closing date and the end of the month. So, if September 3 was your closing date, you would have to prepay the interest that is due through the end of September. Your first monthly loan payment would be due on November 1,

13. Settlement Day – The lender will send the closing instructions to the settlement agent who will prepare a settlement statement. This statement will show the exact amount you will be required to pay at closing.  You must bring a certified check for the remainder of your downpayment (if any) and closing costs.  Make sure that you leave yourself enough time (2 hours) for a satisfactory review of all documents at the closing table. 

14. Congratulations! The House is now yours - The lender has sent the loan instructions, the title company has prepared the title work, you have inspected the property again, and it is time to prepare to move in.