5 Steps to Homeownership

Keep reading for the 5 Steps of Homeownership!

Want to know the 5 steps to homeownership? I’ve got you covered! Buying a home is such an exciting milestone in someone’s life and I’m so happy to help you understand more about how it works. The homebuying process can be a daunting process, so I’m breaking it down for you in 5 simple steps.

Step 1: Financial Assessment

Understanding and assessing your financial readiness is the first step when it comes to homeownership. Take a close look at your savings, monthly income, and expenses. Determine how much you can afford for a down payment and calculate a comfortable monthly payment.

Step 2: Getting Pre-Approved

Once you’ve got an understanding of your financial readiness, the next step is to get pre-approved. Connect with a local and reputable lender and fill our their loan application. They will assess your credit, debt-to-income ratio and other financial factors to determine how much home you can qualify for. Once they help you come to a price point that you’re approved for, now you know what price range of home you can shop for. The lender will also give you a pre-approval letter which shows home sellers that you are a serious and qualified buyer and can offer strength when you are putting in offers on a home.

Step 3: Home Shopping and Offer Submission

Now that you have a budget for your home, it is time to shop for a home! Some things to consider when house hunting, are factors like location, budget, size, layout and condition. Realtors will help you navigate which homes best suit your needs and budget and will schedule showings and open houses.

Pro tip: I never let my client’s see more than three homes in a day! After 3, it becomes confusing and buyers will start forgetting which bathrooms are in what house.

When you’ve found a home you like, it’s time to submit your offer! Your realtor will help you come up with competitive terms to help you get your offer accepted. Some contingencies included in an offer package are purchase price, appraisal, Earnest money deposit (EMD), inspection, loan, and disclosures.

Step 4: Escrow

Congrats! Your offer has been accepted and you are opening escrow! What is escrow? Escrow is the neutral third party that handles all transfers of funds and paperwork.

There are a few people involved when it comes to escrow. Both Realtors, their Transaction Coordinators, Escrow and Title Officers, lenders and loan processers will all be involved in the transaction. It can seem like a lot, but your realtor and the transaction coordinator will be your main points of contact.

During escrow, you will submit your EMD within 3 days of your offer being accepted. Your Realtor will schedule the inspection. When the inspection occurs, the inspector will draft a report of their findings. You can negotiate which of these things either needs to be repaired or you get a seller credit to make repairs yourself. You will also review disclosures of things that have may have happened on the property including insurance claims, deaths on the property and other things disclosed.

In the background, your lender will be closely monitoring your credit and may need additional documents to get the loan approved. Make sure to keep your credit the same the entire time! Meaning don’t open any new cards, or max any cards out, don’t let any accounts become delinquent, and lastly, don’t quit or lose your job!

There are a lot of moving parts in escrow, but having a good agent in your corner like myself will make it as effortless for you as possible!

Step 5: Closing

Once all contingencies are met, the buyer and seller are called upon to sign the necessary documents. This is typically done in the presence of a notary public with the escrow officer. Before the property can be officially transferred, the buyer must provide the necessary funds for the purchase. This includes the down payment and any other closing costs to the escrow account.

After all the documents are signed and the funds are available in the escrow account, the escrow officer will instruct the title company to record the new deed with the appropriate county office. This officially transfers ownership from the seller to the buyer. Now the deed is recorded, the escrow company disburses the funds.

This process marks the successful completion of the escrow process and you have now closed on the home!


The process to homeownership can seem scary, but following these 5 steps to homeownership can make it a breeze! With the right guidance and a clear plan, homeownership is well within reach! If you’re thinking about buying a home or have any questions, reach out to me!

July 26, 2023

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