Step by step · Buying a home

From Preapproval to Closing: Every Step of Buying a Home

Buying a home is a series of clear steps. Here is each one, in order, with what happens and what you need to do.

By Sarah Baraz · Mortgage Loan Officer · NMLS #1859224 · Team Baraz / CMG Home Loans · Updated October 2026

What are the steps from mortgage preapproval to closing?

Buying a home with a mortgage follows 9 steps: get preapproved, shop for a home, make an offer, sign the contract and deliver the earnest money, inspect the home, get the appraisal, go through underwriting, get clear to close, then close and get the keys. From signed contract to closing usually takes 3 to 4 weeks. Sarah Baraz (NMLS #1859224), a mortgage loan officer with CMG Home Loans based in San Antonio and licensed in Texas, Florida and California, guides buyers through each step.

The 9 steps at a glance

Steps 1 to 3Before you find a home
Steps 4 to 9From signed contract to closing: usually 3 to 4 weeks
  1. 1Get preapproved
  2. 2Shop for a home
  3. 3Make an offer
  4. 4Sign the contract
  5. 5Inspect the home
  6. 6Appraisal
  7. 7Underwriting
  8. 8Clear to close
  9. 9Closing and keys

Tap a step to jump to it. The time from contract to closing depends on the loan, the property and how quickly documents come in.

Each step: what happens and what you do

1

Get preapproved

What happensSarah reviews your credit, income, debts and savings and issues a preapproval for a price range and loan type.
What you doSend your documents up front so the preapproval is based on a real review, not a guess.
Watch outA preapproval based only on what you say, without documents, can fall apart after you are under contract.
2

Shop for a home

What happensYou tour homes with your real estate agent within the price and payment you are comfortable with.
What you doLook at the full monthly payment, including property taxes, insurance and HOA dues, not just the price.
Watch outProperty taxes and insurance vary a lot by location, so two homes at the same price can have different payments.
3

Make an offer

What happensYour agent writes an offer with the price, the earnest money deposit, the inspection period and who pays which closing costs.
What you doAsk Sarah for an updated preapproval letter that matches the offer price.
4

Sign the contract

What happensOnce the seller accepts, you are under contract and deliver your earnest money deposit, usually to the title or escrow company. In Texas, you also pay an option fee to the seller.
What you doDeliver the deposit on time and send Sarah the signed contract right away.
Watch outYour earnest money can be at risk if you cancel after the inspection or contingency period ends, so know your contract deadlines.
5

Inspect the home

What happensDuring the inspection period (called the option period in Texas and a contingency period in California), a home inspector checks the condition of the home.
What you doAttend the inspection if you can, then decide with your agent whether to ask for repairs, a lower price or to walk away.
Watch outThis period is usually your window to cancel or renegotiate based on the inspection. Do not let it pass without deciding.
6

Appraisal

What happensThe lender orders an appraisal to confirm the home's value supports the loan.
What you doNothing, unless the appraisal comes in low. Then Sarah and your agent walk you through the options.
Watch outA low appraisal can mean renegotiating the price or bringing more cash.
7

Underwriting

What happensAn underwriter reviews the whole file and may ask for a few more documents, called conditions.
What you doAnswer document requests quickly and completely. Every request that waits can delay closing.
Watch outLarge unexplained deposits, a new debt or a job change can stop an approval at this stage.
8

Clear to close

What happensThe underwriter signs off. Your loan is fully approved and closing can be scheduled.
What you doConfirm the closing date, time and place with the title or escrow company.
9

Closing and keys

What happensYou sign the final documents, the loan funds and the home is yours.
What you doBring a photo ID and your funds to close as instructed. Then file for any homestead or homeowner's property tax exemption your state offers.

Don't do this before closing

Lenders can check your credit and employment again right before closing. These are the most common ways buyers lose an approval at the last minute.

Open new creditNo new credit cards, store cards or buy-now-pay-later plans.
Finance a car or furnitureA new monthly payment can push your debt ratio over the limit.
Change jobsTalk to Sarah first, even for a raise. Income must be verified again.
Make large cash depositsEvery large deposit needs a paper trail. Cash is hard to document.
Move money aroundKeep funds where they are until Sarah says how to move them.
Skip or pay bills lateOne late payment can lower your score before closing.

Documents to have ready

Most buyers

  • Photo ID
  • Pay stubs covering the most recent month
  • W-2s for the last two years
  • Bank statements for the last two months
  • Information on debts (car, student loans, cards)
  • Gift letter, if family is helping with the down payment
  • VA Certificate of Eligibility, for VA loans

Extra for self-employed buyers

  • Personal tax returns, all pages
  • Business tax returns (1120S, 1065) if you own an S-Corp or partnership
  • 1099 forms if you are an independent contractor
  • Year-to-date profit and loss statement
  • Business bank statements (needed for bank statement loans)
  • Proof the business is active, such as a license or CPA letter

The exact list depends on your income and loan program. Sarah sends a personal checklist after the first conversation.

Self-employed? Two extra steps

Before step 1: have Sarah calculate your qualifying income from your tax returns or bank statements, the way an underwriter will. See the self-employed mortgage guide.

During step 7 (underwriting): expect the underwriter to verify the business is still active and may ask for an updated profit and loss statement.

If a step goes wrong

If the loan is denied at any point, a denial is not the end. See our step-by-step plan to get you approved.

Related: preapproval vs. prequalification, first-time homebuyer programs in Texas, Florida and California and the payment calculator.

Sources

Frequently asked questions

How long does it take to close on a house?

From signed contract to closing usually takes 3 to 4 weeks. It depends on the loan program, the appraisal, the title work and how quickly documents are provided. New construction follows the builder's schedule.

What is the inspection or option period?

It is a set window in the purchase contract when the buyer can inspect the home and cancel or renegotiate. Texas calls it the option period, and the buyer pays the seller an option fee for it. Florida contracts commonly use an inspection period, and California contracts use contingency periods. Your agent explains the exact terms in your contract.

What should I not do before closing on a house?

Do not open new credit, finance a car or furniture, change jobs without talking to your loan officer, make large cash deposits, move money between accounts without guidance, or pay bills late.

Is a preapproval the same as a final loan approval?

No. A preapproval is based on a review of your credit, income and savings before you have a home. Final approval comes after the appraisal, title work and underwriting on the specific home.

Ready to start with step 1?

Send Sarah your price range and how you are paid, and she will tell you exactly what to send for a real preapproval.

Send Sarah Your Scenario Call (619) 254-4067

This page is general education, not a loan approval or commitment to lend. Timelines depend on the loan, the property and everyone involved in the transaction. Programs, terms and eligibility are subject to underwriting approval.