What happens, start to finish
Six stages, in the order you will meet them. No jargon you are expected to already know, and nothing here asks you to be ready to start. If you only want one answer, the questions sit beside the stage they belong to.
Plan
Before you talk to anyone, including me.
What happens
Nothing official. This is the stretch where you are working out whether buying is realistic for you, and roughly when. Most people spend longer here than anywhere else in the process, and there is no clock running.
What you do
- Get a rough sense of what you have saved and what you could comfortably pay each month.
- Look at what homes are actually selling for in the areas you are considering.
- Ask questions early. Finding out you are twelve months away is genuinely useful information.
Asked at this stage
- Should I talk to a lender before a real estate agent?
- Either order can work, and plenty of people talk with both around the same time. Getting a clearer picture of your financing early can make the home search more focused, and a pre-approval can also help show a seller that you are likely able to obtain financing. Drake can help you understand where you stand before you start shopping seriously.
- Does asking questions affect my credit?
- Asking questions does not. Neither does the questionnaire on this site — it performs no credit check of any kind. Credit is only checked once you move to a formal pre-approval, and you will know before it happens.
Pre-Approval
The step that turns you from a browser into a buyer.
What happens
You give a lender real documentation — income, assets, debts — and they verify it and check your credit. If it holds up, you get a pre-approval letter stating what you can borrow. That letter is what an agent and a seller want to see.
What you do
- Send your documents in one batch if you can. The single biggest cause of delay is waiting on paperwork.
- Tell your lender anything unusual about your income or history up front. Surprises later cost far more time than surprises now.
- Ask what the letter actually commits you to. It is not a loan, and it is not an obligation to buy.
Have ready
- Recent pay stubs
- W-2s or 1099s
- Recent tax returns
- Recent bank and asset statements
- Photo ID
Asked at this stage
- What is the difference between pre-qualification and pre-approval?
- Pre-qualification is an estimate based on what you say. Pre-approval means a lender has looked at your credit and verified your documents. Sellers take the second one seriously and largely ignore the first.
- What credit score do I need?
- There is no single number that applies to everyone. Requirements differ from program to program, and your credit is one part of a fuller picture that also includes your income, what you already owe, and how much you are putting down. Rather than guessing, it is worth finding out where you actually stand — that costs nothing and commits you to nothing.
- How long does pre-approval take?
- It varies, and the honest answer depends on your situation and how complete your paperwork is when you start. The part you control is having your documents ready. Ask Drake what to expect for your circumstances before you begin, so you are planning around a real answer rather than an average.
- What documents should I prepare?
- It depends on your income and the program, so the real list comes from Drake once he knows your situation. Commonly requested items include proof of income, tax documents, statements for your accounts, and photo ID. If you are self-employed or your income is not a straightforward salary, expect the list to look different. Do not send anything sensitive until he has told you what is actually needed.
- Can I buy if I am self-employed?
- Yes. Self-employed buyers are common. The documentation is different — lenders generally look at tax returns and business records rather than pay stubs — so it is worth starting the conversation earlier than a salaried buyer would.
This is the stage most people are actually at when they find this page. Six short questions and Drake can tell you where you stand.
Start Your Loan PlanShop
The part everyone pictures, and the part that takes the longest.
What happens
You and your agent look at homes inside the range your pre-approval supports. This stretch can run weeks or months depending on the market and how specific you are being.
What you do
- Keep your finances still. Do not change jobs, open new credit, or make a large purchase without telling your lender first.
- Tell your lender if your budget moves. A pre-approval is written against a specific set of numbers.
- Watch your pre-approval's expiry date and ask about refreshing it if the search runs long.
Asked at this stage
- Can I still change my mind about the price range?
- Yes, but tell your lender before you make an offer rather than after. A pre-approval is written against particular numbers, and moving up usually means re-checking them.
Offer
Where the pre-approval letter earns its keep.
What happens
You submit an offer, normally with your pre-approval letter attached and an earnest money deposit. If it is accepted, the property goes under contract and escrow opens.
What you do
- Let your lender know the moment an offer goes out, so they can move quickly if it is accepted.
- Understand your contingencies — the conditions that let you withdraw — before you sign, not after.
- Schedule your inspection promptly. Inspection timelines in a contract are usually short.
Asked at this stage
- What happens after my offer is accepted?
- Escrow opens, your inspection is scheduled, your lender orders the appraisal, and your file moves into underwriting. Several of these run at the same time rather than one after another, which is why the stretch after acceptance feels busy.
Underwriting
The quiet, nerve-wracking part. Mostly it is waiting.
What happens
An underwriter reviews everything — your income, assets, credit, and the property itself — and decides whether the loan can be approved as written. The appraisal happens in this window too. It is normal to be asked for additional documents; it does not mean something is wrong.
What you do
- Respond to document requests quickly. This is the single biggest thing in your control.
- Still no new credit, no job changes, no large deposits or purchases without asking first.
- Ask your lender where things stand rather than guessing from silence.
Asked at this stage
- Why do they keep asking for more documents?
- Because an underwriter has to be able to evidence every conclusion they reach, and one document often raises a reasonable follow-up question. It is routine. The files that close fastest are the ones where the answers come back quickly.
- What if the appraisal comes in low?
- It is a known situation with known options — renegotiating, covering the difference, or disputing the appraisal. Which of those makes sense depends on your contract and your circumstances, so it is a conversation rather than a rule.
Closing
Signing, funding, keys.
What happens
You review your final figures, sign, and your funds and the lender's funds are sent. Once everything records, the home is yours.
What you do
- Read your closing disclosure carefully when it arrives and ask about anything that looks different from what you expected.
- Arrange your funds in the form and by the deadline escrow specifies.
- Bring photo ID.
Asked at this stage
- What are closing costs?
- They are the costs of completing the purchase, separate from your down payment. They can include lender charges, title and escrow fees, recording fees, and prepaid items such as property taxes and insurance. What applies to you depends on the property, the program, and what your contract says about who pays what. You receive these in writing on your loan disclosures as your file progresses, and Drake will walk you through them.
Buying for the first time?
The stages above are the same for everyone. What is different the first time is everything nobody tells you: how much cash you actually need, what really moves what you can afford, and which of your worries are worth having.
Other questions people ask
- How much do I need for a down payment?
- There is no single answer — it depends on the program and on your circumstances. The figure many people have in mind is higher than several programs actually require, and a small number are designed so that buyers who qualify can put little or nothing down. What each one asks for is set out on the loan program pages, where the eligibility rules sit alongside it.
- Do I have to use the lender my agent recommends?
- No. You choose your lender, and you are free to compare. A recommendation is a referral, not a requirement.
Not here? Ask Drake directly. No question is too basic, and asking commits you to nothing.
General information about how the process usually works, written to be understood rather than to be exhaustive. It is not advice about your situation, not a commitment to lend, and not an offer of credit. Programs, requirements, and costs vary and change — the only way to know what applies to you is to ask.
Knowing the steps is not the same as knowing yours.
Six questions, about two minutes, and Drake can tell you which of these stages you are actually at.