Home Buying & Lending Guide By Devonte Harris | Bailee & Co. Real Estate Phone: 405.625.6044 | Email: devonte(at)baileecompany(dotted)com
1. Understand the Big Picture
Buying a home is both exciting and complex. The process usually takes 30–60 days from the time your offer is accepted until closing, but preparation starts weeks or even months earlier. Here’s the typical flow:
- Preparation – Review finances, improve credit, and gather documents.
- Financing – Get pre-approved and explore loan options.
- House Hunting – View homes and compare features, location, and value.
- Offer & Negotiation – Agree on price and terms.
- Due Diligence – Inspect the home and secure final loan approval.
- Closing – Sign documents and get your keys.
Think of this as a roadmap: each step builds on the last to lead you to ownership.
2. Step-by-Step Home Buying Process
Step 1: Get Pre-Approved
Why it matters: Pre-approval tells sellers you’re serious and gives you a realistic budget. It’s based on verified income, credit, and debt information. This is different from a pre-qualification, which is only an estimate.
What you’ll need:
- Recent pay stubs
- W-2s or tax returns
- Bank statements
- Government-issued ID
Step 2: Find Your Dream Home
Your agent will help you identify homes that fit your criteria. Consider not just the home itself, but the neighborhood, commute times, school districts, and resale potential.
Step 3: Offer & Negotiation
Your offer will include the price, contingencies (inspection, financing, appraisal), and timelines. The seller can accept, reject, or counter. Once accepted, you move into the due diligence period.
Step 4: Home Inspection & Appraisal
- Inspection: A professional looks for safety issues, needed repairs, and maintenance concerns.
- Appraisal: Ordered by your lender to ensure the property value matches the purchase price.
Step 5: Final Loan Approval
The lender updates your file with the appraisal results and final documentation. Avoid big purchases, job changes, or new credit during this time — these can delay or even derail closing.
Step 6: Closing Day
You’ll review and sign final paperwork, pay closing costs, and officially take ownership. Bring a valid ID and be prepared for 1–2 hours at the closing table.
3. How Lending Works (Simplified)
A mortgage is a long-term loan that helps you buy a home without paying the full price upfront. You repay it in monthly installments, which usually include four parts:
- Principal – The amount that reduces your loan balance.
- Interest – The lender’s fee for letting you borrow the money.
- Taxes – Property taxes collected by your lender to pay the county or city.
- Insurance – Homeowner’s insurance, and sometimes mortgage insurance (PMI) if your down payment is less than 20%.
Common loan types
- Conventional: 3–5% down, good credit needed.
- FHA: 3.5% down, flexible credit requirements.
- VA: For veterans and active-duty military, no down payment.
- USDA: For eligible rural areas, no down payment.
Key factors for approval
- Credit Score: Affects interest rate and eligibility.
- Debt-to-Income Ratio: Percentage of your income that goes toward debt payments.
- Down Payment: Larger down payments can lower monthly costs.
- Employment History: Lenders prefer stable income for at least 2 years.
4. Buyer Success Tips
- Keep your financial profile steady during the process.
- Budget for extras: moving expenses, furniture, utility deposits.
- Think long-term about your home needs and lifestyle changes.
- Ask questions — your agent and lender are your guides.
- Stay organized with a checklist and calendar for deadlines.
5. Home Buying Checklist
- Get pre-approved
- Choose a trusted real estate agent
- Start house hunting
- Make an offer
- Schedule inspection & appraisal
- Get final loan approval
- Close & celebrate!