The Process

Smart Start Home Buying Process


New American Funding understands how life-changing first steps can be. That's why we're here to assist you every step of the way in finding the home of your dreams. A pre-approval shows you how much you can afford so you can narrow down your home search.

Dream up your dream home

Consider options like environment, size, amenities, and location. Is your dream home in the sunny suburbs or a lively downtown area? How many rooms do you imagine it having? Are you interested in amenities like a pool? What kind of commute would you like to have? Consider all the things that are important to you and your family.

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Start the Hunt

Start home hunting with your real estate agent. When searching for a new home, do some initial research and determine whether your new neighborhood is suitable for you. Talk to neighbors and familiarize yourself with the area. The more aware you are of the neighborhood's quirks, the better idea you'll have of whether you'll be happy living there in the years ahead.

Make an Offer

Once you have found the home of your dreams, it's time to make an offer. Since it is a formal document, the real estate agent will prepare the offer on your behalf. This written proposal includes the purchase price, down payment, loan amount, deposit and terms of conditions.

There are three potential outcomes when making an offer: the seller accepts the offer, counteroffers, or the seller rejects the offer and no deal can be made.


Once you have made an offer, the seller may make a counteroffer. You can accept, reject, or negotiate with the seller by making another counteroffer. Every time either party makes a counteroffer, the other side is free to accept, reject, or counteroffer once again. The offer does not become a binding contract until one of the parties officially signs the contract.

Apply for a Loan

Loan Officers are the go-to for help when examining your different home loan options. While you might not know everything about mortgages, there are some questions you can ask yourself that will help point you in the right direction. Providing the "answers" to these questions to your Loan Officer, will help them identify your goals, and ensure that you choose the best mortgage for your needs.

  1. How long do you plan to stay in your home?
  2. Where are interest rates heading?
  3. Is your goal to build equity in your home?
  4. Do you see your financial situation changing in the next couple of years?
  5. Do you mind taking on a bit of risk and change, or prefer predictability?

Appraisal and Inspection

Home inspections occur after the purchase agreement has been signed because, in most cases, the agreement will contain a home inspection condition. This condition allows the buyer to back out of the transaction should any issues arise. Home inspections are not a requirement everywhere, but are HIGHLY suggested!

The real estate agent usually recommends a home inspector and the buyer is in charge of having the inspector come out and survey the property. The home inspector will be looking for anything unusual or unfit in the structure of the home or property. He or she will also assess the plumbing, electrical, appliances, ventilation systems, roof, garage, and the exterior of the home. The home inspection report will let you know if there are issues with any of these elements.

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Negotiate Home Repairs

In most cases there are issues to resolve and you will need to decide how you want to deal with them. Commonly the seller will be asked to lower the sales price, fix the issues before closing, or provide credit towards the buyer's closing costs. You and the real estate agent will put in writing what needs to be fixed, how you would like it to be handled, and present it to the seller and their listing agent. The seller will then agree or disagree to the terms or provide a counteroffer. If you have a home inspection condition in the purchase contract, the buyer will be able to back out if something major is found.

Sign Loan Documents

The escrow officer will arrange signing appointments with you and the seller once the final loan documents are ready. To make it easier for all parties to sign, lenders will often send the documents to through a mobile notary.

At your closing appointment you will receive the HUD-1 statement, which will show all costs associated with the loan. You have the right to request the HUD-1 statement before closing so you can review it and compare it against the Good Faith Estimate (GFE). After you sign the documents, the escrow officer will send them back to the lender.

Move in!

You've gone through the steps of buying a home and now it's finally time to move in! It's customary that on the day your loan is funded, you will receive the keys to your new home as well. While you should be very excited about moving in, we all know moving can have its issues unless you take the right steps to keep it as painless as possible.