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Purchase Process

This is an outline of a typical purchase process.  Individual circumstances may vary.

1. Make an Affordability Appointment
   Contact Faculty Staff Housing for an affordability appointment.   We will explain the programs for which you are eligible, take down some financial information, and run a model that shows how much of a house you can afford using all or some of Stanford’s programs based on assumptions you provide.
   
2. Get Pre-approved
   Before you have identified a house to purchase, complete and make an appointment to submit a pre-approval loan application package to Faculty Staff Housing.  At that time, we can also update your affordability model with new information.  Concurrently, you will want to get pre-approved by a commercial lender for the first mortgage.  The pre-approval package will contain a list of lenders who have experience with Stanford programs and on-campus leases. It takes us about three weeks to process the pre-approval, after which time you will receive a letter which you can use to make a purchase offer.
   
3. Make an Offer
   Using the pre-approval letters that you have obtained from Stanford and a commercial lender, you may make an offer to purchase a home.  If you are making an offer on a campus home, you must use Stanford’s contract document available at purchase contract documents.  If you are using a real estate professional, work with him/her to complete this process.
   
4. Complete Your Financing
   When your offer is accepted, you will need to complete your loan approval.  Once you submit a copy of the fully executed purchase contract to Faculty Staff Housing, we will request required disclosures, inspection reports, and further documentation that you will need to provide.  You will also need to meet any contingencies in the contract, perform inspections, finalize your first mortgage, arrange for hazard and earthquake insurance, and identify funds for the down payment.  The title company will supply a preliminary title report and Faculty Staff Housing will order an appraisal of the property.
   
5. Sign Documents
   About a week before the close of escrow, you will sign loan and lease (if any) documents at Faculty Staff Housing.  You will also need an appointment at the title company to sign additional documents.  At this time, the title company will inform you of the exact amount of funds which will be required to complete your transaction.
   
6. Deposit Funds
   You will need a cashier’s check or wire transfer to deposit funds for the down payment and closing costs in the amount specified by the title company.  Deposit this amount at the title company on the business day before the close of escrow.
   
7. Take Possession
   The title company will record documents and disburse funds on the close of escrow date.  Make arrangements with the seller to transfer keys and take possession of your new home.

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