7 Steps to Buying a Home in Fresno: From Pre-Approval to Closing
Thinking about buying a home in Fresno or Clovis? Whether you're a first-time homebuyer or purchasing your next home, understanding the homebuying and mortgage loan process can make the experience much easier.
Buying a home involves two processes working together: purchasing the property and securing the financing. Here's what to expect from beginning to end.
1. Get Pre-Approved Before Shopping for Homes
Before seriously searching for a home, your first step should be mortgage pre-approval.
Your lender reviews your income, employment, credit score, debts, and available funds to determine your potential borrowing power.
Most sellers expect buyers to provide a pre-approval letter with their offer. Without one, your offer may not be taken seriously, particularly when competing with other buyers.
2. Find a Home and Make an Offer
Once you're pre-approved, you can confidently search for homes within your budget.
Your real estate agent will help you evaluate properties, negotiate a purchase price, and submit an offer. Once the seller accepts your offer, you enter escrow, and the timelines for completing your purchase begin.
3. Open Escrow and Begin Loan Processing
After your offer is accepted, you'll generally submit your earnest money deposit to escrow and finalize your mortgage application.
Your lender begins verifying your financial information, including bank statements, employment, income, and the source of your down payment.
The loan processor organizes this information and prepares your file for underwriting.
4. Complete Inspections and the Appraisal
While your lender processes your mortgage, your real estate agent helps coordinate property inspections and reviews seller disclosures.
Meanwhile, the lender typically orders an appraisal to confirm the property's value supports the loan.
Depending on the findings, you may negotiate repairs or other terms with the seller.
5. Underwriting and Loan Approval
During underwriting, the lender takes a detailed look at your financial qualifications and the property.
Underwriters review credit history, income, debt-to-income ratio, assets, appraisal results, and other lending requirements.
It's common for the underwriter to request additional documentation or clarification before issuing final approval.
6. Clear to Close and Final Paperwork
Once underwriting requirements have been satisfied, your lender issues a clear-to-close authorization.
You'll review your final mortgage terms, closing costs, and required funds. For most purchase mortgages, you must receive your Closing Disclosure at least three business days before closing.
You'll also complete any remaining contractual requirements and prepare to sign your closing documents.
7. Funding, Recording, and Getting Your Keys
After you've signed your documents and deposited any required funds, the lender funds the loan.
Escrow coordinates the final settlement, and the deed is recorded with the county. Once the transaction closes, you can receive your keys and celebrate becoming a homeowner!
Experience Makes a Difference
There are many moving parts in buying a home, and unexpected issues can arise throughout the process.
With more than 20 years of mortgage lending experience, Steve Morgan of Royal Charter Mortgage helps Fresno and Clovis homebuyers navigate each step, coordinate with their real estate agents, and work toward a smooth, successful closing.
Ready to start looking for a home? Contact Steve Morgan Home Loans to discuss your financing options and get pre-approved.