The Homebuying Process
Step by Step: Every Stage From First Call to Funded
If you're just starting to think about buying a home, it's normal to feel like you're missing a map. Most resources give you a vague overview that skips half of what actually happens. This page lays out the full homebuying process steps the way we actually work through them with clients — every stage, in order, with honest notes on what to expect at each one.
There are two distinct phases. The first gets you from an initial conversation to a pre-approval letter. The second takes you from a signed contract to the day your loan funds. According to the CFPB's homebuying resource center, most buyers say they wished they'd understood the process better before starting — and the part they usually mean is exactly what's on this page.
Phase 1: Mortgage Consult to Pre-Approved
This phase is about getting ready before getting approved — in that order. A lot of people want to skip the preparation and jump straight to an application. That tends to backfire. The work you do in Phase 1 directly shapes what you qualify for, what your rate looks like, and how smoothly Phase 2 goes.
Every client starts here — and this step matters more than most people expect. This isn't a sales call. It's a planning conversation. We talk through your goals, your timeline, and what homeownership needs to look like for your life and finances. We call it mapping out your hopes, dreams, and desires. The plan that comes out of this conversation shapes everything that follows.
Once you're ready to move forward, we send your loan application. You can complete it over the phone with us, or we'll send you a secure link via email or text — whichever works better for you. The application is completed through a secure online portal and covers your income, employment history, assets, and liabilities.
Once we have your completed application, we review what you've submitted and identify exactly which supporting documents we need. We also pull credit and take a full picture of your financial profile. If anything is worth addressing before moving forward — a credit item, an income question, a gap in employment — we flag it here before it becomes a problem later.
This stage exists because it's one of the most common places the process slows down. Many buyers complete the application but don't upload their supporting documents — pay stubs, W-2s, tax returns, bank statements, and anything else specific to their situation. We track this separately so nothing falls through the cracks.
With your application and documents in hand, we do a thorough review of your complete file before issuing pre-approval. We look at income, assets, credit, debt, and how everything works together for the loan program that fits you best. If anything needs clarification or additional documentation, we ask before moving forward — not after.
Your pre-approval letter is issued and you're ready to shop with confidence. This is a verified pre-approval — not a rough estimate, but a real review of your actual financial picture. Sellers and their agents take this seriously. As time passes during your home search, some documents will need to be updated. Your loan officer will let you know what's needed when you go under contract.
Get Honest Answers From Someone Who Knows
The roadmap shows you the sequence. A real conversation shows you where you personally stand — and what, if anything, is worth addressing before you apply.
Ask a Real QuestionPhase 2: Under Contract to Funded
Once a seller accepts your offer, you're under contract — and the clock starts. This phase typically runs 21 to 30 days. A lot happens in that window, and most of it runs in parallel. Here's every stage in the order it happens.
As soon as your offer is accepted and the contract is signed, we need a copy. This officially kicks off Phase 2. We also take a fresh look at your documents at this point — some may need to be updated depending on how much time has passed since pre-approval. We'll let you know exactly what we need.
Your loan file is formally set up with the specific property details from your contract — loan amount, property address, purchase price, and closing date. This stage sets the foundation for everything that follows and needs to be accurate before we can move into disclosures.
You will receive a loan disclosure package which is a set of documents that estimate your loan terms, closing costs, and important information about your loan. This package includes your Loan Estimate (LE) along with other required federal and state disclosures. It is important that you review and sign your disclosure package promptly, as we are unable to move forward with processing your loan until it has been completed and returned.
Once disclosures are signed, we order the appraisal. A licensed appraiser visits the property and produces an independent assessment of its market value. Your lender uses this to confirm the home is worth what you're paying — protecting both you and the loan. The appraisal is paid by the buyer, typically $500–$900, and is separate from your home inspection.
The Closing Disclosure (CD) is a detailed document outlining your final loan terms, costs, and fees. The CD process involves three key stages:
Initial CD The first version of the CD is issued for your review, typically after your appraisal has been completed.
Signed CD Once you have reviewed the initial CD, you will need to sign it to acknowledge receipt. Federal law requires a mandatory 3-day cooling off period after you receive your CD before closing can take place, giving you time to review all final terms carefully.
Final CD A final version of the CD is produced shortly before closing, reflecting any last adjustments to ensure all figures are accurate before your closing date.
Your complete loan file — application, loan documents, contract, and homeowners insurance — is submitted to an underwriter for a final credit decision. The underwriter reviews everything independently. Most files come back as Approved with Conditions, which is normal and expected. Please note that title work and appraisal may not be ready to submit to underwriting at this stage.
This is a normal, expected part of nearly every loan file — not a red flag. Conditions are simply items the underwriter needs resolved before issuing final approval. Some are internal items we handle, like waiting on title work or the appraisal. Others may require something from you — an updated document, a letter of explanation, or clarification on a bank deposit. We'll always tell you exactly what's needed and why.
Once all conditions are addressed, your file goes back to underwriting for a final review. This stage exists in almost every loan — it's the normal back-and-forth between a loan team and an underwriter, not a sign that something went wrong. We stay on top of this closely so it doesn't become a timeline issue.
The underwriter has reviewed everything, all conditions are satisfied, and your loan is fully approved. This is the green light. This is where we will complete your Final Closing Disclosure (CD) which must be signed at least 3 business days before closing.
Your final loan documents are sent to the title company or closing attorney. You'll do a final walkthrough of the property around this time, then sit down at the closing table to sign. The signing process typically takes 45–60 minutes.
The lender wires funds to the title company, the deed is recorded, and ownership transfers to you. In most cases, you receive your keys the same day the loan funds. This is the finish line.
Costs Most Buyers Don't Plan For
Down payment gets most of the attention. But there's a category of costs that reliably catches buyers off guard — especially first-timers. Colorado's CHFA program offers down payment assistance for qualified buyers, but these additional costs are typically still the buyer's responsibility. Use our mortgage calculator for payment estimates, then factor in the table below for the full picture.
| Cost | Typical Range | When It's Due | Notes |
|---|---|---|---|
| 🚩 Home Inspection | $350–$600 | Within days of going UC | Not required by lender — but skipping it is a real risk |
| 🚩 Radon Inspection (CO) | $125–$200 | Same time as inspection | Colorado-specific; consistently overlooked by first-timers |
| 🚩 Appraisal | $500–$900 | After disclosures signed | Required by lender; ordered by us, paid by buyer |
| 🚩 Closing Costs | 1% – 5% of loan amount | At closing | Includes lender fees, title, recording, prepaid items |
| ✅ Homeowners Insurance | $2,000–$4,000/yr | Before or at closing | First year often paid upfront; required before funding |
| ✅ Moving Costs | $500–$3,000+ | Around closing | Easy to underestimate — plan for this early |
Where Things Actually Slow Down
The Waiting on Documents stage exists for a reason — it's one of the most common places files stall. Completing the application is only half the step. Uploading your actual supporting documents is what moves the file forward. When everything comes in at once and completely, pre-approval can happen the same day.
It doesn't. This is the normal outcome of underwriting — it happens on nearly every loan. Sometimes conditions are internal items we're waiting on, like title or the appraisal. Sometimes they require a simple document or explanation from you. We'll always tell you what's needed and why. Your job is to respond quickly.
Your Closing Disclosure must be signed at least 3 business days before you can close — this is federal law, not a preference. If the CD needs to be reissued because of a change in loan terms, that 3-day clock resets. Getting to Clear to Close with enough lead time is something we actively manage on every file.
What This Looks Like in Practice
Jamie and Chris — Colorado Springs, CO
Jamie and Chris came to us after spending two months browsing homes online without talking to a lender. They had a number in their head for what they could afford — based on a rough online calculator, not their actual financial picture.
Their first call was a mortgage consult. We talked through their income, their existing debt, and what they needed their monthly payment to look like. The number they had in mind was close — but not quite right. We also identified a credit account with an unusually high balance relative to its limit, and a tax return question worth documenting properly before applying.
They spent about three weeks handling those items. When they came back ready to apply, they submitted every document within 24 hours. Pre-approval came through the next morning.
They found a home, made an offer, and went under contract. The inspection turned up a minor HVAC issue they negotiated into a seller credit. Radon came back elevated — a mitigation system was installed before closing, which the seller agreed to pay for. Appraisal came in at value. After the first UW submission, the underwriter needed a letter explaining a cash deposit. They responded within a day. Clear to Close came four days later. They closed on day 22.
No surprises at closing — because we talked through every cost and every stage at the very first consult.
What to Do Next
If this roadmap made the process feel more manageable, the next useful step is figuring out where you personally stand within it. Your income, credit, savings, and goals all shape which loan programs make sense for you — and whether there's prep work worth doing before you apply.
Many first-time buyers start by looking at FHA loans because of the lower down payment requirements. Conventional loans are worth understanding too — the right fit depends entirely on your situation. You can also browse all available home loan programs to get a clearer picture before your first conversation.
Buying in Colorado or Florida? Our Colorado mortgage broker page and Florida mortgage broker page has more on how we work with buyers across the two states.
Curious Where You Actually Stand?
The roadmap shows you every stage. A real conversation shows you which stage you're starting from — and what, if anything, is worth doing before you apply. No pressure, no forms, just an honest look at your situation.
Get a Real Read on Your SituationQuestions We Hear at This Stage
Phase 1 — from your first consult to pre-approval — can take anywhere from one day to several weeks depending on how quickly documents come in and whether any prep work makes sense first. Phase 2 — from accepted offer to funded — typically runs 21 to 30 days. A realistic total timeline for a well-prepared buyer is 60 to 90 days from first conversation to keys, though it varies based on your situation and the market.
Before — and the earlier the better. Talking to a lender first tells you what you can actually afford, surfaces anything worth addressing before you apply, and puts you in a position to move quickly when you find the right home. Buyers who skip this step often lose out on homes because they can't get pre-approved fast enough, or they fall in love with a home that doesn't fit their actual financial picture.
It means the underwriter has reviewed your file and is prepared to approve the loan once specific items are resolved. This happens on nearly every loan — it's a normal part of the process, not a warning sign. Conditions range from internal items we're waiting on, like the appraisal or title work, to things we may need from you, like an updated bank statement or a short letter of explanation. We'll always walk you through exactly what's needed and why.
The Loan Estimate is sent early in the process — within three business days of submitting your application with a property address. It shows your estimated loan terms, rate, monthly payment, and closing costs. The Closing Disclosure comes later, once your loan is fully approved, and shows your final actual numbers. By law, you must receive and sign your Closing Disclosure at least 3 business days before closing. If anything changes your loan terms after it's issued, it has to be reissued and that 3-day window resets.
Yes — they're completely different things. The appraisal is ordered by the lender to determine the market value of the home. It's not a condition report. The home inspection is hired by you to assess the physical condition of the property — roof, foundation, electrical, plumbing, HVAC, and more. The lender doesn't require an inspection, but buying without one means buying without knowing what you're actually getting. In Colorado, a radon test is also worth adding — Colorado has some of the highest radon levels in the country.