Nine steps from thinking about it to holding the keys. Most of the work happens before you tour a single house, which is the part that surprises people.
Before you contact a lender or an agent, pull your own report. You are entitled to a free copy each year. Your score sets both the rate you will be offered and which programmes are open to you: 720 and above prices well, and FHA can work from 580.
Checking your own credit is a soft pull and does not affect your score. If something looks wrong, disputing it takes about 30 days, which is exactly why this is step one and not step four.
Work out what you are comfortable paying, not what you could theoretically qualify for. Those are usually different numbers. Include the full payment: principal, interest, taxes, insurance and any HOA dues.
A lender may approve you for more than you want to spend. Approval is a ceiling, not a recommendation.
Your agent is your main guide through everything that follows, so the fit matters. Ask friends and family, read reviews, and interview more than one. Ask how many transactions they closed last year and in which neighbourhoods.
A good agent and a good lender talk to each other constantly during a transaction. If you do not have an agent yet, ask for a referral.
We verify your income, assets and credit, then issue a letter stating what we are prepared to lend. This is a real underwriting review, which is why sellers treat it differently from a prequalification.
Multiple mortgage inquiries inside a 45-day window count as a single event on your score, so comparing lenders does not compound the impact.
With the financial groundwork done you can move quickly when the right house appears, which in a competitive market is most of the advantage. Your agent will know about properties before they are widely listed.
Keep the preapproval current. They typically expire after 60 to 90 days and take minutes to refresh.
Your agent structures the offer against the current market: price, contingencies, timeline and earnest money. A strong preapproval letter attached to the offer is frequently what separates two similar bids.
The highest offer does not always win. Certainty of closing is worth real money to a seller.
An independent inspector examines the property. Anything found becomes negotiating leverage: a price reduction, a repair, or a credit at closing. It is also the last time you will be inside before closing, so measure anything you need to.
Go to the inspection if you can. An hour walking the house with an inspector teaches you more than the report will.
Lenders require homeowner's insurance to be in place before closing. If you already own, one call to your agent covers it. Set utilities to transfer on your move-in date rather than after it.
Get insurance quotes early. Premiums vary far more than people expect, and in some areas coverage itself can be difficult to secure.
You review and sign the closing documents, funds are transferred and the deed records. You receive the keys. Your agent should be with you, and we will have reviewed the Closing Disclosure with you three days beforehand.
Do not open new credit, change jobs or move large sums between accounts between preapproval and closing. Every one of those can derail a loan days before the finish.
Step one is your credit and step four is a preapproval. Both are quick, and both are free. Everything after them is easier.
