The Process
What are the steps to buying a house?
The short answer
Buying a home generally follows a set sequence: check your credit and budget, get pre-approved for a mortgage, shop for a home, make an offer with earnest money, complete inspection and appraisal, finalize your loan, review the Closing Disclosure, and sign at closing. Understanding the order helps you know what each document and cost is for and when contingencies protect you.
Key points
- Pre-approval comes before serious shopping.
- Your offer usually includes earnest money and contingencies.
- Inspection and appraisal happen after an accepted offer.
- Review the Closing Disclosure at least three business days before signing.
Pre-approval vs. pre-qualification
Pre-qualification is a rough estimate; pre-approval involves document verification and carries more weight with sellers. Neither is a final loan commitment.
The three-day rule
Lenders must deliver your Closing Disclosure at least three business days before closing so you can compare it to your Loan Estimate and question any changes.
Put this to work
Sources
Every claim above traces to a public government source.
- ViewT1What is a Loan Estimate? (Regulation Z / TRID)
Consumer Financial Protection Bureau · Government / primary · 2024
- ViewT1Understand closing costs and the Closing Disclosure
Consumer Financial Protection Bureau · Government / primary · 2024
- ViewT1What is earnest money?
Consumer Financial Protection Bureau · Government / primary · 2024