Overview of the Home Buying Process When Financing a Property

Purchasing a home with financing involves multiple steps, from pre-qualification to closing. Below is a general outline of the process:

1. Pre-Qualification & Pre-Approval

• Pre-Qualification: A lender reviews your income, credit score, and debt to provide an estimate of how much you may qualify for.
• Pre-Approval: A more in-depth process where the lender verifies financial documents (pay stubs, tax returns, bank statements) and provides a pre-approval letter, which strengthens your offer.

2. Home Search & Making an Offer

• Work with a real estate agent to find homes that fit your budget and needs.
• Once you find a home, submit an offer. If accepted, you’ll sign a purchase agreement.

3. Loan Application & Processing

• Submit a mortgage application with necessary documentation.
• The lender orders an appraisal to assess the home’s value and a title search to verify legal ownership.
• Home inspections may be required to assess the property’s condition.

4. Loan Underwriting

• The lender’s underwriter reviews all financial documents and property details to ensure loan eligibility.
• Additional conditions may be required, such as updated bank statements or letters of explanation.

5. Loan Approval & Closing Disclosure

• If the underwriting process is successful, the loan is conditionally or fully approved.
• A Closing Disclosure (CD) is provided at least three days before closing, outlining final loan terms, interest rates, and costs.

6. Closing & Funding

• Attend the closing appointment to sign all legal documents.
• Pay any required closing costs and down payment.
• The lender funds the loan, and the property ownership is transferred.

7. Move-In & Loan Repayment

• Once the deal is finalized, you receive the keys and can move in.
• Begin making mortgage payments as per the loan terms.

Each step requires coordination with your lender, real estate agent, and other professionals. If you need financing assistance, MIAMI CAPITAL Lending LLC can help navigate the process smoothly.