Preparing To Buy A Home

Home finance made easy. Lowest Rates..Best Terms

Step 1 - Do Your Homework

The earlier you can start with your new home research,the better.  Research the areas that you have interest in living. Look at the homes in your target market area and watch the housing prices.  You want to get a good feel for home values. Compare sizes, number of bedrooms and bathrooms, other amenities and square footage. Is the house updated with newer features like granite counters and stainless appliances. Is there a pool?

Once you have a feel for comparable pricing, watch to see if home prices are increasing or decreasing so you can understand the trends in your target areas.

Step 2- Determine How Much Of A House You Can Afford

There are different schools of thought for how much you should spend on your home. One says and I agree, that  you should not spend more than 3-5 times your annual income for a house. 

There are a lot of factors that come into play and every case is different. Use our affordability calculator to the right to help you determine how much of a house you can afford.

Some things to keep in mind:

  • Do you have steady income?
  • How much of a downpayment do you have?
  • Do you have reserves for major and minor repairs you might need to make?
  •  Can you provide the following
    -Verification of income
    -Bank statements showing sufficient funds to close
    -Two years of employment history
These things are not only important for piece of mind but they will affect your interest rate which will affect your monthly payment.

How Much Of A House Can I Afford
Mortgage Loan Calculator

Ask About Loan Programs That Fit Your Needs.
Bad Credit, Down Payment Assistance, Jumbo Home Loans, Super Jumbo, VA Home Loans, FHA Loans, Statement Only Home Loans, Asset Only Home Loans, Fix & Flip Home Loans,
Residential - Commercial!

Step 3 - Get Pre-Qualified & Pre-Approved For A Mortgage

The easiest way to know how much you can qualify for is to fill out the form to the right and get pre-qualified for a mortgage. There is no obligation. Actually home loans today require no commitment or obligation on the borrower until they sign their closing documents with their title company. 

In order for you to get pre-qualified, you only need to provide some financial information to your mortgage banker.  Some of the things that they will ask you for is your income, the amount of savings that you might have and any investments that you may have.

Your information will be reviewed by a lender that will let you know how much they can lend you.  Once you know how much of a loan that you qualify for, you will know the range of the homes that you should be looking at.

A Pre-Qaulification is the process by which a lender will tell you how much you can afford. They do not pre-approve until they verify that the information that has been presented is accurate.

The pre-approval process will involve providing financial documents (W-2 statements, bank account statements, paycheck stubs, etc.) so that your lender can do the due diligence and verify your financial status and credit.

loan prequalification

Step 4 - Shop For Your Home and Make An Offer

Now that you know how much of a home you can afford, shop for and find the perfect home for you.  It is sometimes helpful to take notes when shopping for a home.  

Download this home shopping reference checklist, HERE

Make sure to check out the little details of each house.
For example:

  • Test the plumbing by running the shower to see how strong the water pressure is and how long it takes to get hot water
  • Try the electrical system by turning switches on and off
  • Open and close the windows and doors to see if they work properly

It’s also important to evaluate the neighborhood and make a note of things such as:

  • Are the other homes on the block well maintained?
  • How much traffic does the street get?
  • Is there enough street parking for your family and visitors?
  • Is it conveniently located near places of interest to you: schools, shopping centers, restaurants, parks, and public transportation?

Take as much time as you need to find the right home. Then work with your real estate agent to negotiate a fair offer based on the value of comparable homes in the same neighborhood. Once you and the seller have reached agreement on a price, the house will go into escrow, which is the period of time it takes to complete all of the remaining steps in the home buying process.

Step 5 - Contact For Best Mortgage Home Loan Rate has a wide range of very competitively priced home loan programs and a reputation for exceptional customer service and client satisfaction.  You will have many questions when you are purchasing a home and having one of our experienced, responsive mortgage professionals to assist you can make the process much easier.  Every home buyer has their own priorities when choosing a mortgage.  Some are interested in keeping their monthly payments as low as possible, others are interested in making sure that their monthly payments never increase..and still others pick a loan based on the knowledge that they will be moving again in just a few years. For immediate questions call 800-826-5077.

Step 6 - Have The Home Appraised

Lenders will arrange to have an independent appraiser provide an estimate of the value of the home that you are buying.  The third party appraiser is not associated with the lender or buyer. The appraisal will let all the parties involved know that you are paying a fair price for the home.

Step 7 - Coordinate The Paperwork

There is a lot of paperwork involved is purchasing a home.  Your lender will arrange for a title company to handle all of the paperwork and make sure that the seller that you are purchasing your home from is the rightful owner of the house that you are buying

Step 8 - Close The Sale

At closing, you will execute signature copies of all of the paperwork that is required to complete your purchase, including all  of your loan documents.

It will typically take a few days for your loan to be funded after the paperwork is returned to the lender.  Once the check is delivered to the seller than you are ready to move into your new home. 

conventional loan

Welcome To Your New Home 

Refinance and Mortgage Home Loan Advice

VA Loan 2021

VA Home Loan 2021

VA Home Loan 2021 and the changes to VA Home Loans Introduction- What is VA Home Loan? VA (Veteran Affairs) Home Loans is a mortgage

Read More »
FHA Loan Limits

FHA Loan Limits 2021

The FHA Federal Housing Administration announced the nations new loan limits for 2021. For most of the country these loan limits have increased. The new

Read More »