Buying a home
From pre-approval to closing day, one step at a time.
Six steps, in the order they usually happen, and the documents to gather along the way. Your loan officer adjusts the details to your situation.
Step 1
Get pre-approved
Share a few details and give your written consent. A loan officer reviews your finances and sets a budget to shop with. A pre-approval is not a commitment to lend.
Step 2
Set a comfortable budget
Use the Payment Planner to test prices, down payments and terms. Include taxes, insurance and any HOA dues, not only principal and interest.
Step 3
Find a home and make an offer
Work with your real estate agent on the offer. Send your loan officer the purchase agreement as soon as it is accepted.
Step 4
Choose your loan and apply
Compare terms side by side with your loan officer and complete the full application. This is when most of the checklist below is collected.
Step 5
Appraisal and underwriting
The lender orders an appraisal and reviews your file. Expect follow-up questions, answer them quickly and avoid new debts or large unexplained deposits.
Step 6
Closing day
Review your final figures, sign the loan documents and pay your down payment and closing costs. Your loan officer is there for questions beforehand.
First-time buyers
Your first home comes with a lot of new words
Escrow, underwriting, contingencies, points. Your loan officer explains each one when it comes up, and you can ask as many questions as you like. A smaller down payment can make buying sooner possible, though it means a larger loan and a higher monthly payment.
Document checklist
Gather these before you apply
Having them in one folder makes the process faster. The online application never asks for a Social Security number, a date of birth or bank details. Your loan officer will tell you how to share those safely when they are needed.
Income
Pay stubs from the last 30 days
W-2 forms or tax returns for the last 2 years
A profit and loss statement if you are self-employed
Award letters for other income, such as benefits or a pension
Assets
Bank and savings statements for the last 2 months
Statements for retirement or investment accounts
A gift letter if part of your down payment is a gift
A note on the source of any large deposits
Identity and property
A government photo ID
The signed purchase agreement, once you have one
A homeowners insurance quote
HOA details if the home has dues
Costs to plan for
More than the monthly payment
Down payment
The share of the price you pay up front. A larger down payment means a smaller loan and, usually, a smaller payment.
Closing costs
Fees paid at closing, separate from your down payment. They vary by loan and location, and your loan officer lists them early.
Reserves
Cash left after closing for repairs and the unexpected. Some loans ask you to show reserves.
First-year upkeep
Moving, repairs and the first property tax or insurance bill often arrive together. Plan a monthly amount for them.
Closing day
What to expect when you sign
You review the final figures, sign the loan documents and pay your down payment and closing costs. Bring a photo ID and ask your loan officer how you will pay. Read each page and ask about anything that looks different from what you were told.
