The short answer
There are nine main steps: check where you stand, get pre-approved, plan your down payment, find a home, make an offer, open escrow, go through inspections and the appraisal, get final loan approval, then sign and get the keys. From accepted offer to keys is commonly about a month, and it can run longer.
Before you look at homes
- 1. Check where you stand. Look at your credit reports, add up your monthly debts, and count what you have saved. What FHA says about credit scores
- 2. Get pre-approved. A lender reviews your income, debts, credit and savings and tells you what you may qualify for. A pre-approval is not a final approval or a commitment to lend.
- 3. Know your down payment plan. Your own savings, a gift from family, or a down payment program. Down payment help here
Finding the home and making an offer
- 4. Find a home. Most buyers work with a real estate agent. Keep the loan limits for your loan type in mind. FHA loan limits in these counties
- 5. Make an offer. Your agent writes it. If the seller accepts, you have a contract.
From accepted offer to keys
- 6. Open escrow. A neutral company holds the money and paperwork. You pay an earnest money deposit.
- 7. Inspections and appraisal. You hire an inspector to check the home for you. The lender orders an appraisal to confirm the value. On an FHA loan the appraiser also reports on the home's condition.
- 8. Final loan approval. The underwriter reviews everything and may ask for more documents. Do not open new credit or change jobs during this time without talking to your loan officer.
- 9. Sign and close. You sign the loan documents, pay your down payment and closing costs, and the sale records with the county. Then you get the keys.
The costs to plan for
| Cost | When |
|---|---|
| Earnest money deposit | Shortly after your offer is accepted. It counts toward your down payment. |
| Home inspection | During the inspection period |
| Appraisal | Usually early in escrow |
| Down payment and closing costs | At signing |
| First mortgage payment | Usually the month after the month following closing |
On an FHA loan, an earnest money deposit of more than 1% of the price has to be documented with its source.
What I see in real files
Jamal's own words go here: two to four sentences on what he sees in real files like this. Claude does not write this part.
Questions people ask next
How long does it take?
It varies. Many purchases close about 30 days after the offer is accepted. Loans needing extra review take longer.
Should I talk to a lender or an agent first?
Either works. Knowing what you may qualify for before you shop saves time.