The Complete Homebuyer Guide

Table of Contents

• Preparation

• Pre-Approval

• Find a Realtor

• Home Search

• Make an Offer

• Submit Loan

• Inspection

• Appraisal

• Underwriting

• Closing

• Post-Closing

Preparation

Before you start shopping for homes, it's important to know what you qualify for and what steps you can take to ensure you secure the most favorable terms. Our ClearPath™ Pre-Qualification uses a soft credit pull (no score impact) to give you a fast, accurate view of your loan options, with no pressure or commitment. We also help you understand the entire financial impact of the loan and how it aligns with your short- and long-term goals. Visit our How To Apply page to learn more. 

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Here’s what we evaluate and how we help:

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• Soft Credit Pull

  Review your credit report and identify ways to improve your score if needed to qualify or get a better rate. Running your credit also allows us to instantly access all of your liability information used for qualifying purposes. ​

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• Financial Review

  Review income, assets, and liabilities to confirm mortgage eligibility. We’ll help you build a plan if adjustments are needed.

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• Loan Scenario Analysis

  We analyze a variety of loan scenarios to find the best loan type, term, and down payment structure to meet your goals.

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• Closing Cost Estimation

  We provide a detailed estimate of your total closing costs so you know what to expect and plan for once you decide to move forward. 

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• Rate Estimation

  We’ll provide real-time rate quotes based on your credit profile, loan type, and pricing options, including the impact of discount points or lender credits, so you can make an informed decision early in the process. Learn more about Interest Rate Pricing and Points in our Insights article. 

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• Mortgage Calculators

  In addition to our ClearCalc™ Mortgage Calculators available on our website, we use a proprietary Excel-based analysis tool to model the true financial impact of each loan, helping you understand how it aligns with your short- and long-term goals.

Pre-Approval

Once you’ve decided to move forward, the next step is getting fully Pre-Approved. This shows sellers you’re a serious, qualified buyer, and gives you a firm loan amount to work with when making offers. If you were already pre-qualified, transitioning to a pre-approval is seamless. Visit our How To Apply page to learn more about the Pre-Approval Review process. 

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Here’s what we evaluate and how we help:

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• Hard Credit Pull

  The key difference between a Pre-Qualification and a Pre-Approval is that a Pre-Approval requires a full FICO Tri-Merge credit report. Your qualifying score is the median score from the lowest-scoring borrower, using data from Equifax, TransUnion, and Experian, based on the FICO 3.0 model. The Hard Credit pull allows us to determine your qualifying score and access your liability information used for qualifying purposes. ​

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• Financial Review

  Review income, assets, and liabilities to confirm mortgage eligibility. If you were already pre-qualified, you will simply need to provide up-to-date documentation based on how much time has passed. 

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• Loan Scenario Analysis

  We analyze a variety of loan scenarios to find the best loan type, term, and down payment structure to meet your goals.

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• Closing Cost Estimation

  We provide a detailed estimate of your total closing costs so you know what to expect and plan for once you decide to move forward. 

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• Custom Rate Quote

  We’ll provide real-time rate quotes based on your credit profile, loan type, and pricing options, including the impact of discount points or lender credits, so you can make an informed decision early in the process. Learn more about Interest Rate Pricing and Points in our Insights article. 

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• Mortgage Calculators

  In addition to our ClearCalc™ Mortgage Calculators , we'll utilize our advanced excel workbook that analyze the true financial impact of the loan and how it impacts your goals. 

Find a Realtor

Once you're Pre-Approved, it’s time to start seriously looking at homes and that means working with a trusted real estate agent who understands your goals, budget, and local market.

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Here’s what to know:

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• Why You Need an Agent

  A buyer’s agent helps you find the right property, schedule showings, write offers, and negotiate on your behalf. Their experience can make or break your purchase.

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• You Typically Don’t Pay Their Commission

  In most cases, the seller pays both the Listing Agent and Buyers Agent, so there’s usually no added cost for you to work with a skilled buyer’s agent. Be sure to confirm this is the case when securing an agent. 

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• Team Effort

  We’ll work closely with your Realtor every step of the way to ensure a smooth process from start to finish. While we don’t share personal financial details, we provide them with the information they need, such as your loan type, Pre-Approval status, and closing timeline, to help structure strong, competitive offers that align with your goals.

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• Avoid Conflicts of Interest

  Be cautious about using the Listing Agent as your own, their loyalty is divided, and they can’t fully represent your best interests. The same goes for lender referrals: some agents push “preferred lenders” due to personal relationships, direct and/or indirect financial incentives or simply by not being familiar with a certain lender/broker. Always work with professionals who prioritize your goals, not theirs.

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• We Can Recommend Great Realtors

  If you don’t already have an agent, we’re happy to connect you with a local expert we trust, especially one who respects your financial strategy and doesn’t push you beyond budget.

Home Search

Once you're Pre-Approved and working with a Realtor, it’s time to start looking at homes seriously. This is where your budget, location, and must-have list come together. 

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Here’s what to focus on:​​

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• Watch for Red Flags

  Things like obvious water damage, cracked foundations, poor drainage, or past insurance claims may cause loan issues or affect long-term value. 

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• Think About Future Resale

  Before buying, ask yourself how long you realistically plan to stay in the home. Keep in mind that when you sell, you'll incur 5–6% in selling costs (agent commissions, fees, etc.). Prioritize properties with strong long-term appeal, even if this isn’t your “forever home.”

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• Don’t Overlook the Basics

  Consider resale potential, school districts, property taxes, utility costs, and commute time, not just granite countertops.

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• We’re Here While You Shop

  Found a home you like? Send us the address, we’ll estimate the payment, taxes, and whether it fits within your loan approval. 

Make an Offer

Once you’ve found a home you love, it’s time to submit an offer and how you structure it can have a big impact on whether it gets accepted. We’ll coordinate directly with your Realtor to help you present a strong, competitive offer that stays within your financial limits.

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Here’s what to understand:

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• Purchase Price vs. Appraised Value

  Your offer should reflect both the market and your loan approval. If the home doesn’t appraise for the offer amount, you may need to renegotiate or cover the difference based on the terms of the contract. Ensure your Agent has Comparable property sales to justify their estimated property value. Make sure to ask your Realtor if the contract has any Appraisal related contingencies.

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• Seller Concessions

  You can request the seller to cover certain closing costs, but this affects how the offer is viewed. For example, if you believe the home is worth $294,000, you can offer $300,000 with $6,000 in seller concessions to cover your closing costs. The seller still nets $294,000, and you reduce your upfront cash needed. This works if the home appraises at $300,000 and you're trying to preserve cash while staying competitive. We’ll help determine how much, if any, you should request based on your loan type and competition.

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• Earnest Money Deposit (EMD)

  This is the good faith deposit you put down to show the seller you're serious. It’s typically 1–3% of the purchase price and gets applied to your down payment on the loan at Closing. If you back out of the contract without a valid contingency or breach the Purchase Agreement, you risk losing your EMD to the Seller. The EMD is held by a neutral third party (usually the title company or a real estate brokerage) until closing. 

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• Contingencies

  Common ones include the appraisal, inspection, and financing. An Appraisal Contingency protects you if the home appraises for less than your offer. Without it, you may be required to cover the difference out of pocket. An Inspection Contingency allows you to walk away or renegotiate if major issues are found during the home inspection. A Financing Contingency ensures you're not obligated to buy the home if your loan is denied. We'll help you navigate this in more depth as you prepare to make an offer. 

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• Need Help Structuring the Offer?

  We’re available to run updated payment scenarios, review taxes, and help you avoid any financing surprises before your offer is submitted.

Submit Loan

Once you land the deal, we will finalize the details of your loan together, including the interest rate lock, term, loan structure, and disclosure paperwork. You'll already be prepared for this process from the Pre-Approval Review meeting. This step ensures you’re fully informed and in control of how your financing is set up.

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Here’s what we’ll cover:

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• Rate Lock

  We’ll present your current interest rate options, including different pricing based on points or credits and help you decide whether to lock the rate now or wait based on market movement and your closing timeline. Learn more about Interest Rate Pricing and Points in our Insights article. 

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• Final Loan Scenario Review

  We’ll revisit all loan options (term, down payment, loan type) to make sure the structure still aligns with your goals. This includes analyzing short-term affordability vs. long-term equity and interest savings.

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• Official Loan Disclosures

  We’ll issue your Loan Estimate (LE) and other required disclosures, which outline your projected rate, closing costs, cash to close, and total monthly payment. These documents are required before moving to the next stage.

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• Electronic Signing & Compliance

  All disclosures can be signed securely online. You’ll receive a copy for your records, and we’ll confirm that all timing requirements are met under federal lending laws.

Inspection

A home inspection is your opportunity to independently evaluate the property’s condition before moving forward with the purchase. While it’s not required by the lender except for very unique loan scenarios, it’s one of the most important steps to protect yourself as a buyer.

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Here’s what to know:

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• You Choose the Inspector

  Your Realtor will typically provide recommendations, but the choice is yours. The inspector works for you, not the seller, the lender, or the agent. 

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• What the Inspection Covers

  A standard inspection reviews the home's structure, roof, foundation, plumbing, electrical, HVAC, and major appliances. You’ll receive a written report with photos and any concerns flagged.

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• What Happens If Issues Are Found?

  Most inspections uncover at least minor issues. You can request repairs, negotiate a credit from the seller, or walk away depending on the severity and contract terms.

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• Inspection ≠ Appraisal

  The inspector’s job is to assess condition, not value. The appraisal is a separate process handled by the lender (discussed in Step 8). 

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• Inspections Are Typically Paid Out of Pocket

  This cost isn’t part of your loan closing costs and is usually paid at the time of the inspection (commonly $500–$800 depending on property size and location).

Appraisal

The appraisal is ordered by the lender to independently confirm that the home’s value supports the loan amount. This protects both you and the lender from overpaying for a property that doesn’t justify its price.

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Here’s what to know:

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• Ordered After Disclosures Are Signed

  Once your Loan Estimate and disclosures are signed, we order the appraisal through a third-party management company to ensure complete independence.

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• Assigned to a Local Appraiser

  The order is routed through the Appraisal Management Company to a licensed appraiser familiar with the local market, ensuring the property is evaluated based on relevant, nearby comparable sales.

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• Based on the Sales Comparison Approach

  Appraisers use the Sales Comparison Approach to determine market value. This involves selecting three to six recently sold homes in the same area that are similar in size, layout, age, and features. The appraiser then makes adjustments for key differences, such as square footage, number of bathrooms, garage size, or recent renovations. However, it does not factor in current listings, future demand, or general market competition, so make sure your Realtor is basing the estimated appraised value of properties that have been sold. 

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• What If the Appraisal Comes in Low?

  If the home appraises for less than the purchase price, it may or may not impact the loan based on how much you plan to put down. It impacts is the Loan-To-Value Ratio which can have an impact on your interest rate, PMI factor and overall loan qualification. We’ll help you explore options, including renegotiating with the seller, adjusting your loan terms if needed, or increasing your down payment. 

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• VA, FHA and USDA Have Stricter Appraisal Rules

  For government-backed loans, appraisers may flag safety or property condition issues that must be corrected before closing. If using a Government backed loan, make sure your Realtor prepares for this and understands what sort of things are and are not issues.  

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• We Review the Report With You

  Once the appraisal is complete, we’ll walk you through the report and explain how it impacts your loan.

Underwriting

Underwriting is the lender’s final review of your complete loan file, verifying every document, number, and condition before issuing full loan approval. Much of this review will have already been completed during the Pre-Approval process, ensuring a smoother and efficient underwriting experience. 

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Here’s what happens:

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• Full File Review

  The underwriter verifies your income, assets, credit, loan structure, and property documentation to ensure everything complies with loan program guidelines. ​​

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• Conditional Loan Approval

  Once reviewed, you’ll receive a conditional approval, meaning the loan is approved pending a short list of final items. Typically this includes the title report, homeowners insurance policy, and final appraisal report. 

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• We Manage the Process for You

  You won’t deal directly with underwriters. We stay in constant communication and let you know exactly what’s needed and when. We'll take care of the Title Order, assist with helping you obtaining Homeowners Insurance and any other requirement that comes up. All required documents can be uploaded securely to our client portal. 

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• Goal: Clear to Close

  Once all conditions are satisfied, the underwriter issues a “clear to close," which allows your closing documents to be prepared and scheduled.

Closing

Closing is the final step in the homebuying process , where you sign documents, wire your funds, and officially become a homeowner. We coordinate everything leading up to this point to make sure it goes smoothly and without surprises.

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Here’s what to expect:

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• Final Walkthrough (Optional)

  Usually done within 24 hours before your closing appointment, this is your chance to make sure the home is in the agreed-upon condition, no damage, no missing items, and all negotiated repairs completed.

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• Closing Disclosure Review

  At least three business days before signing, you'll receive a Closing Disclosure (CD). This shows your final loan terms, closing costs, and total funds needed. We’ll review it with you line by line to ensure accuracy. You'll usually receive the Preliminary CD much earlier in the process and then the final balanced CD once the loan is Clear to Close and we balance it with the Title company. 

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• Wiring Your Funds

  You'll wire your down payment and closing costs to the title company before or on closing day. We’ll confirm the final number and put you in direct contact with the Title company to ensure you take all the necessary security precautions. You may also have the option to bring a cashiers check on closing day, based on the amount of the funds. 

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• Signing the Final Documents

  You’ll sign both the loan and title documents , usually in person with a title agent or notary. This typically takes about 45–60 minutes.

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• Funding and Keys

  After signing, the transaction officially closes, the loan is funded and you get the keys to your new home.

Post-Closing

Once you’ve closed on your home, there are still a few important steps to take to ensure everything transitions smoothly. From setting up your mortgage account to staying informed on future refinance opportunities, we’re here to support you long after closing day.

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• Lender Account Setup

  Within 1–2 weeks of closing, you’ll receive an email or letter from your loan servicer with instructions to set up your online account. This is where you’ll make payments, enroll in autopay, and access your mortgage statements.

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• Post-Closing Guide from Our Team

  We’ll send you a custom post-closing guide outlining several key areas of concern, FAQ, refinancing information and a link to share a Review if you enjoyed your experience. 

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• Escrow Follow-Up

  If you escrowed your Taxes and/or Insurance, your servicer will pay property taxes and homeowners insurance for you. If you opted out, you’ll be responsible for paying those bills directly. Visit our Insights article to learn more about Escrow Accounts. 

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• Refinance and Equity Tracking

  We keep an eye on market rates and your loan-to-value position. If there's a future opportunity to refinance, remove mortgage insurance, or adjust your loan, we’ll reach out with personalized guidance.

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• Ongoing Support

  Whether you have a question about your current loan or are planning your next move, we’re always available. We consider all of our clients life-long relationships, not one-time transactions. Whether it’s refinancing, buying again, or simply needing trusted advice, you can count on us to be your go-to mortgage resource anytime.