The Homebuying Process: A Step-by-Step Guide

If you’re purchasing with a mortgage, your first call should be to a loan officer. You need to know what you qualify for and what you can comfortably afford before you fall in love with a home that’s outside your range. Once you’ve worked through that, get your Pre-Approval letter — it will be included with any offer you submit.

At the same time, find a qualified real estate agent you trust and feel comfortable working with. Spend time with your agent upfront — outlining your requirements, budget, preferred areas, size needs, and anything else that matters to you. That conversation sets the foundation for everything that follows.

The market can move fast. If you find a home you want to see, notify your agent immediately — don’t wait. When you’re at showings, go beyond the surface: study the layout, note what conveys with the sale, check the age and visible condition of major systems (HVAC, water heater, pool equipment, appliances), drive the neighborhood at different times of day, and look into the zoned schools. Details matter.

Once you’ve found the right home, you and your agent will review all sales-related documents and disclosures before putting anything in writing. You’ll confirm with your lender that the property fits your budget, then work out your offer strategy together. Negotiation is often part of this process, which is exactly why having a skilled negotiator in your corner matters.

All parties sign the purchase agreement and any related addenda and disclosures. Congratulations — you’re officially under contract. The clock starts now on several important deadlines, so pay close attention from this point forward.

This is the money you deposit into escrow to secure the transaction — typically wired to the title company or closing attorney within 3 days of the contract’s effective date. Should you fail to perform your contractual obligations, you risk losing this deposit (with some exceptions).

In a typical market, expect 1–3% of the purchase price on a financed offer and 5–10% on a cash offer.

Immediately after receiving your ratified contract, work with your loan officer to complete the full mortgage application. Contractually, you typically have 5 days to get this done. Your loan officer will keep you on track — don’t let this one slip.

Depending on the home, you may want a general inspection, pool inspection, septic inspection, and/or a WDO (wood-destroying organisms / termite / mold) inspection. You can order just about any inspection you want during your due diligence period.

In the average market, the inspection period runs 5–10 days, with 7 days being most common. One important thing to understand: the Florida As-Is contract — which you’ll likely be using — allows you to back out for virtually any reason during this window without losing your deposit, as long as nothing to the contrary has been written into the contract.

Use this period thoroughly. It’s one of your strongest protections as a buyer.

Reports are typically available same-day or within 24–48 hours. You’ll review them with your agent and decide how to proceed. If the home’s condition is acceptable, you move forward. If there are items that need to be addressed — either by you, your lender, or your insurance carrier — your agent will work to renegotiate with the seller.

If the seller refuses to budge and you’re not comfortable proceeding, your agent will have you sign a Cancel & Release form. As long as you’re still within your inspection period, your deposit comes back to you.

Your lender will require you to secure and “bind” a homeowners insurance policy before closing. If your carrier requires it, you’ll use your inspector’s Wind Mitigation and 4-Point Inspection reports to shop for a policy. Florida’s insurance market can be tricky — don’t leave this one until the last minute.

Once the inspection period is behind you and the loan is moving forward, your lender will order the appraisal. The appraiser independently determines the property’s market value. If it comes in at or above the purchase price, you’re clear. If it comes in low, there will be decisions to make — your agent will walk you through your options.

You’ll work with your loan officer and the underwriting department to clear any remaining approval conditions. This often means providing additional documentation — bank statements, retirement account records, employer letters, gift letters, etc. Respond to these requests quickly. Delays here can push your closing date.

Most utility companies will let you schedule the start of service over the phone. Some counties and municipalities may require a copy of your executed Settlement Statement, which you’ll get at closing — so if that’s the case, just plan accordingly. Same goes for getting your mailbox re-keyed through the post office.

Your lender issues the Clear to Close — the green light that your loan is fully approved. The file gets sent to the closing title office or attorney’s office and final closing figures are prepared. You’re almost there.

You’ll receive your Cash to Close amount from your lender via the Closing Disclosure (CD) and a Balanced Settlement Statement (ALTA) from the title company. This figure combines your down payment (if applicable) and any closing costs.

Wire these funds the day before closing if at all possible. Wiring delays on closing day are stressful and avoidable. Also — always verify wire instructions directly with your title company by phone before sending anything. Wire fraud is real.

This typically happens the day of closing, just before you sit down to sign. Use this time to confirm the home is in the condition you agreed to — that agreed-upon repairs were made, items that were supposed to stay are still there, and nothing has changed since your last visit. If something is off, address it before you sign.

You’ll sign all loan documents (if using a mortgage), closing documents, and the deed. Bring two forms of ID. When the last page is signed and everything is funded — you get the keys. That’s it. You own a home.