Home Buying Process from Pre-approval to Closing

The home buying process sounds complicated because nobody explains it in order. You hear terms like "escrow," "underwriting," and "contingency" thrown around — and if you don't know where they fit in the timeline, it all blurs together. However, I am here every step of the way to walk you through it - no need to memorize the entire process.

Step 1: Get Pre-Approved (Before You Do Anything Else)

If you don’t have a lender then I can connect you to one! A good lender makes a major difference when there are multiple offers and a tight deadline. I always recommend working with a local lender who has a good reputation.

Pre-approval is not the same as pre-qualification. Pre-qualification is a lender's rough estimate based on numbers you tell them. Pre-approval means you've submitted actual documents — pay stubs, tax returns, bank statements — and a lender has verified that you can borrow up to a specific amount.

Get pre-approved before you start touring homes.

What you'll need: two years of tax returns, recent pay stubs, two months of bank statements, and a government-issued ID. The process takes a few days to a week.

Step 2: Find a Home and Make an Offer

Once you're pre-approved, you know your real budget. Now you can search with purpose.

When you find the right home, I will help you write a purchase offer. This includes the price you're offering, your proposed closing date along with your pre-approval letter.

The seller will accept, reject, or counter your offer. Negotiation is normal. Once both parties agree on terms, you're officially under contract and in the state of Texas your “Option Period” begins.

Step 3: Option Period: Get the Inspection & Renegotiate

When you go under contract, your Option Period begins. Standard option periods in Austin are 7 days. However, if you want to be more competitive it may be shorter or non-existant. You will pay a small fee to have the option to back out of the contract for any reason during this Option Period window.

You'll pay down earnest money - typically 1% of the purchase price within 2 days of going under contract or less. This is a good-faith deposit that tells the seller you're serious. It's held in escrow and applied to your down payment or closing costs at the end.

Earnest money is refundable but the Option Period fee is not.

We will schedule an inspection within the first few days of your Option Period if not sooner. The inspector's job is to find problems. There will always be something in the report. What matters is severity. A leaky faucet is different from a failing foundation. After the inspection, you can request repairs, ask for a price reduction, or — if it's bad enough — walk away. During this phase we will negotiate anything necessary and come to terms before the end of the option period.

Step 4: Appraisal and Underwriting

Your lender will order an appraisal to confirm the home is worth what you're paying. If it appraises low, you'll need to renegotiate the price, cover the difference in cash, or walk away.

At the same time, your loan goes into underwriting. An underwriter reviews everything — your income, credit, assets, the property — and decides whether to approve the loan. This is where deals can slow down or fall apart. Don't open new credit accounts, make large purchases, or change jobs during this period. Underwriters will re-verify your financials right up until closing.

Underwriting typically takes 2–4 weeks.

Step 5: Clear to Close

When underwriting is complete and all conditions are satisfied, you'll receive a "clear to close." Your lender will issue a Closing Disclosure at least three business days before closing — review it carefully. It outlines your final loan terms, monthly payment, and closing costs. Compare it against your Loan Estimate from early in the process and flag any discrepancies.

Step 6: Closing Day

Closing is the finish line. You'll sign a significant amount of paperwork, pay your closing costs (typically 2–5% of the purchase price), and wire your down payment if you haven't already. The seller signs their documents separately.

Once everything is signed and funds are transferred, you get the keys!

The entire process from accepted offer to closing typically takes 30 days, though it can stretch longer depending on the lender, the property, and any complications that arise.

The Bottom Line

Buying a home has a lot of moving parts, but the process is linear. Know what stage you're in, stay responsive to your agent and lender, and don't make any major financial moves until you're holding the keys.

Questions about where you stand or how to get started? That's what I'm here for.