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Step 1
Find the home you want to own. This can be done on your own or made easier with the help of a real estate professional. Either you or your realtor will furnish the title company with a copy of the Contract of Sale and start the process to find a mortgage lender.
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Step 2
Search for a mortgage lender. Your real estate professional should know lenders or brokers that can work with you to secure a mortgage loan. Also, check options online, check with your own bank or ask friends who they would recommend. Keep in mind that you are looking for affordable interest rates and need to know what lender fees the lender will expect at closing time. After you narrow the search, ask the lender to furnish you with a Good Faith Estimate so that you have their fees in writing. If they can't or will not furnish you with a Good Faith Estimate, find another lender as they as required by law to do so. Don't be afraid to question fees shown or even ask the lender to waive some of their fees.
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Step 3
Furnish your lender with the requested items. These should all be standard such as W-2s, bank statements, employment verification and so forth. They may ask for additional items if they find credit problems or debts that may have to be paid or explained to finalize the processing of the loan. After loan processing is completed, the lender orders appraisals, credit reports, tax certificates and surveys. These fees will all be collected at the closing.
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Step 4
Check that the title company received a copy of the Contract of Sale and that an order was turned in to their title abstract company to research the chain of title to the property that you are purchasing. This takes place even if it is a new construction, as someone owned the land before a house was built. The purpose is to make sure that the title is clear and able to be transferred and there are no outstanding tax liens against the property.
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Step 5
Set a date to "close" once the mortgage lender and the title company have completed their various searches. The legal documents or loan package is sent to the title company by either the lender or the lender's attorney. The title company compiles all the information from the closing package, the sales contract, real estate agents and inspectors and prepares the settlement statement of a HUD-1 statement.
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Step 6
Request a copy of the settlement statement several days before the closing. Make sure that the fees and charges you are being charged are what you expected. If not, contact your lender or the title company immediately so that revisions can be made. In addition, the settlement statement will show your first year's insurance premium, the amount of property taxes and insurance you will be prepaying in escrow unless you have waived having an escrow account, filing fees of the legal documents, attorney's fees and escrow fees. A day or two before the closing is the time to question anything that you do not feel is correct.
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Step 7
Close on your home mortgage closing. You go to the title company with the funds required per the settlement statement. Be sure to bring a cashier's check or the equivalent thereof and a photo ID. You'll sign all the documents, be furnished with a copy of all of them and after the seller signs their portion of the papers and the loan is funded, you will be given the keys to your home. The title company handles the processing of all the loan and legal papers. You have your keys, your home and all you have to do now is move in.
