The Loan Process Steps

The process of acquiring a loan and the home-buying process can seem overwhelming at first. Here are the basic steps (in order) that normally take place when purchasing a home:

  1. Apply for Loan   -   Meet with Harris Mortgage to discuss your needs and provide the needed documents to complete your loan application.
  2. You Are Approved   -   Congratulations! Your loan is pre-approved. The approval letter will be sent to you and your real estate agent.
  3. Go House Hunting   -   Find the perfect home and make an offer.
  4. Your Offer is Accepted   -   Your real estate agent will forward the sales contract to your lender for review.
  5. Schedule Your Home Inspection   -   It is time to order the home inspection. Your real estate agent may have a good referral if you need one.
  6. Lock in that Loan Rate   -   If you have not discussed locking in a rate with Harris Mortgage, now is a good time to do so.
  7. The Home Inspection is Complete   -   Negotiate any necessary repairs with the seller.
  8. Appraisal   -   It is time for your lender to order the appraisal.
  9. Home Insurance   -   Contact a home owner's insurance agent and secure a quote for the premium.
  10. Appraiser Visit   -   The appraiser will provide a property value based on comparable home sales in the area.
  11. Appraisal Completed   -   The appraisal will be sent to the lender for review.
  12. Underwriting Checklist   -   The underwriter will request any missing items that may be needed for final loan approval.
  13. Final Review   -   The appraisal and all updated income and asset documents will be reviewed by the underwriter.
  14. Final Approval   -   You receive final loan approval! Your lender will now order loan documents and send them to the Title Company.
  15. Closing Disclosure (3-day wait)   -   The lender issues your final closing disclosure and will conduct a pre-closing review to go over final numbers.
  16. Wire Money to Escrow   -   You will wire your funds to close escrow.
  17. Escrow Signing   -   This is where you sign your final closing documents at the Title/Escrow Office.
  18. Congratulations!   -   Your loan has funded and the mortgage is recorded. Your real estate agent will give you keys to your new home!
  19. Your 1st Mortage Payment   -   Once your loan funds, you will have 30-60 days before your first payment is due. For example, a loan that funds on September 18th will have a first payment due date of November 1st.