Chain of Events in Purchasing a Home

Make an offer on the property. At this time, you will submit earnest money. This is generally a personal check made out to the listing company, which must deposit it in a non-interest-bearing escrow account.

You will also be signing a seller's disclosure (this is state law). And, if the property was built prior to 1978, you will sign a lead paint disclosure.

After your offer is accepted, you will need to make a formal application at the bank of your choice if you have not already done so.

The next step is to arrange for home inspections. We cannot tell you who to use, but we can help you choose an inspector who will work well with you.

Most of the time, you will have 15 days from the date of the accepted offer to have inspections, and respond in writing should you require repairs.

Now it's sit back and wait time. You've taken all the required papers to the bank, and are awaiting loan approval. This means your lender has gathered all your paperwork together and submitted it to underwriting. These are the people who approve or disapprove the loan.

Loan approval. Great! Your only other job is to purchase a one-year homeowner's insurance policy. You must have this to go to closing.

Title work. The listing agent has submitted all the information about the property to a title company or law firm specializing in real estate.

The title company will check to be sure there are no liens against the property and that the property is where it's supposed to be. They will have done a mortgage survey. The title company prepares the settlement statement (sometimes called a HUD-1). In a perfect world you will know at least 24 hours in advance how much money to bring to closing.

You will have purchased a cashier's check or bank draft covering the amount you are to pay at closing. You will also bring your insurance policy and paid receipt to closing.

Here it is. You're excited and maybe a little nervous. Don't be. Closing is always anti-climatic. You'll sign a lot of papers, and the sellers will sign a few papers. You've just bought a home.

CONGRATULATIONS!