The home buying process, in all 16 steps.
Most buyers only hear about five of the steps until they are already in the middle of it. Here is the full sequence, in order, so you know what comes next and what we are already handling for you.
Get ready
- Mortgage pre-approval. Review your finances and goals with your mortgage advisor. You get a Loan Estimate showing the loan type, interest rate and closing costs. Pre-approval clears you to shop in a price range, subject to final underwriting.
- Provide documentation. Bank statements, pay stubs, tax returns or W-2s and a credit report. Self-employed buyers usually need a longer income history. Aim for a debt-to-income ratio under 40%. Most lenders treat 50% as the ceiling.
Find it and agree on a price
- Shop for a home. Anyone can browse listings online. What you need is an agent who reads pricing trends by neighborhood and hears about properties before they list. The seller typically pays your agent’s commission, so representation costs you nothing directly.
- Make an offer. Your agent checks comparable sales and helps you set a number that balances what the home is worth against current demand. This is also where you decide whether to ask the seller to cover part of your closing costs.
- Negotiate the sale. Your agent handles counteroffers and explains the reasoning behind every number. Once you and the seller agree on price and contingencies, earnest money goes into escrow and you set a closing date.
Inspect, appraise and underwrite
- Financing starts. Confirm with your mortgage advisor that nothing has changed since pre-approval. Title and escrow open. Lock your interest rate, typically for 30 days. A 60-day lock costs more.
- Home inspection. An inspector checks the roof, HVAC, electrical, plumbing, foundation and structure. Findings are your leverage to request seller concessions. Attend if you can.
- Appraisal. Your lender orders an independent valuation to confirm the home is worth the price. You usually don’t attend.
- Homeowner’s insurance. Start shopping when you start shopping for the home. Bundling home, auto and life with one carrier often earns a discount. If the property sits in a flood plain, your lender requires separate flood insurance.
- Underwriting. An underwriter reviews credit, capacity, capital, collateral, conditions and common sense. Expect one to five business days.
- Loan conditions. Conditions are requests for more documentation, not a rejection. Your mortgage advisor walks you through each one.
- Final approval. Once conditions clear, the file goes back for sign-off. That can take a day or a month, depending on how many items were open and how fast you returned documents. Final approval triggers your Clear to Close.
Close and move in
- Closing preparation. The lender sends final loan documents to escrow, which adds tax and payment details. Funds move after the signed paperwork comes back.
- Signing day. Sign at the escrow office or with a mobile notary wherever suits you. All-cash buyers can generally sign through DocuSign. Bring your down payment balance and closing costs by certified check or wire. Take a final walk-through to confirm that any negotiated repairs were done.
- Get the keys. Usually the same day as closing, unless you arranged otherwise.
- Moving day. Book movers early. Good ones need weeks of notice, especially for longer moves. Interview them the way you interviewed your agent and lender.
Off-market and pre-sale access
Clients get access to both on-market and off-market opportunities, including building opportunities before they are ready for the market. Tell us the type of property you want and we will tell you what we are seeing.
Call (206) 407-5452 or email [email protected].
Common questions
How many steps are there in buying a home?
Sixteen, from mortgage pre-approval to moving day. Most buyers only hear about five of them until they are already in the middle of the process.
Who pays the buyer’s agent?
The seller typically pays the agent’s commission, so you get full representation at no direct cost. Terms vary by deal, so confirm yours in writing before you make an offer.
What debt-to-income ratio do lenders accept?
Aim for under 40%. Most lenders treat 50% as the hard ceiling.
How long does underwriting take?
Expect one to five business days after your file is submitted. If the underwriter sends conditions, that is a request for more documentation, not a rejection.
How long does a rate lock last?
A rate lock typically lasts 30 days. A 60-day lock costs more.
Ready to start?
Mortgage pre-approval is step one. We can introduce you to Specialty Home Loans, or start with the search.