Homebuyer Basics: From Pre-Approval to Closing

A home purchase moves through seven practical stages: pre-approval, shopping, the offer, inspections, lender review, final approval, and closing.

A purchase becomes easier to manage when each decision happens in the right order. Pre-approval should establish the buyer's workable range before a property creates contract deadlines.

1. Establish the numbers

Pre-approval reviews income, monthly debts, credit, available cash, and the intended price range. The result should identify a realistic housing payment and the documents or credit issues that need attention before shopping.

2. Shop within the approved range

The same price can produce different payments because property taxes, homeowners insurance, mortgage insurance, and association dues vary. Send a property address to the lender before assuming it fits the pre-approval.

3. Make the offer

The offer sets the price, earnest money, closing date, and inspection, appraisal, and financing deadlines. A current pre-approval and a closing timeline the lender can support make the offer more dependable.

4. Inspect the property

The buyer's inspection evaluates condition and repairs. The lender's appraisal serves a different purpose: it supports the collateral value and checks applicable property requirements. One does not replace the other.

5. Complete lender review

After the accepted contract and initial disclosures, processing and underwriting review updated borrower documents, appraisal, title, and insurance. Conditions must be answered completely and promptly.

6. Protect the approval

Keep employment, credit, debts, and bank activity stable. A new car payment, credit-score drop, job change, or unexplained transfer can require another underwriting review or make the loan ineligible.

7. Review and close

Review the Closing Disclosure, confirm the final cash needed, verify wire instructions directly with the closing agent, complete the final walkthrough, and sign the closing documents.

Scenario

A buyer receives pre-approval on April 1, shops during April, and signs a 30-day contract on May 2. Inspection is completed during the first week, disclosures are signed immediately, and appraisal and underwriting continue through mid-May. The buyer clears the final conditions by May 24, receives the Closing Disclosure at least three business days before closing, and signs on May 31.

When Should You Talk to a Lender?

What Happens After Your Offer Is Accepted?

Start with the numbers, not the listing

Bring your income, monthly debts, approximate credit, available cash, and target price range. DRG Mortgage can identify the next step before serious shopping begins.

Start With Pre-Approval

Sources

Consumer Financial Protection Bureau: Buying a House

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