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For a first time homebuyer, once you've found a house and been pre-qualified for a home, the steps to closing can be somewhat confusing. It's actually a simple process that when understood, actually makes sense.

You have found the perfect house. You can't believe that you are actually buying it! You thought buying a house was only for old people with kids, you know, like in their thirties or something. Now what happens?

You've should already have been pre-qualified for a home loan by a mortgage specialist. In fact, that lender gave you a letter, saying as much, and you gave it to the seller, giving them peace of mind that your offer is real and you can back it up. Your credit has probably already been pulled and you've been given a copy of it. Your realtor will provide the fully executed sales contract to your lender. Upon receipt of this contract, your lender will update and get you all your documents and disclosures to sign, within three days of receipt of your contract. If your credit has already been pulled and you've seen these documents, expect a NEW set since you finally have a property in mind. And trust me, this is only the beginning of the deluge of documents you will see, sign and sign again.

Your lender will now go back to your loan and put in all the particulars of this property - such as taxes, homeowner's association fees - and reflect any earnest money you may have put down with the contract. At this point, with a property determined, you can explore locking in an interest rate or reserving funds if the loan is through a particular housing agency. Your lender will also want to collect and update documentation that proves all you have related about yourself. I call it "eye balling" the documents. Assessments will be made if there is further documentation required to substantiate your loan application.

When all contract contingencies are removed, the lender will order the appraisal for your property. The lender chooses the appraiser and the type of appraisal necessary to ensure the value of the property. After all, it's the lender's money on the line, and in case you don't repay your loan, the value of the loan may have to recouped in a foreclosure sale of the property. Not likely to happen, but the lender will make sure they are protected by the appraisal. The appraiser will notify all parties involved that there may be repairs required before the value can be found or the property will adhere to a certain standard required by the lender. The lender

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