Below is an overview of the steps involved to homeownership. Of course, if you’re ready to speak to a lender about your home buying plans, feel free to contact any one of our lending specialists, or stop by any one of our nine branches.
1. Get Your Finances In Order
Before you start your search, it's a good idea to take some time to put your finances in order and collect the information you'll need to get a mortgage. For example, get a copy of your credit report, confirm that the information is correct and resolve any problems or errors on your report.
The earlier you know where you stand, the more time you will have to correct errors or pay down debt. You should also organize documents that indicate your assets, savings, employment and income.
2. Get Pre-Approved
Now that you have your information organized, you are ready to work with a lender to discuss how much you can afford to spend on your home. Simply complete our free online pre-approval application orcontact one of our experienced lendersto set up an in-person appointment.
We will gather details from you on your employment, your income, and how much you are planning on putting forward as your down payment. Then our lenders will review your credit history and begin calculating how much you can afford based on your income, debts, and the amount of down payment you will be putting down for your home. We will then give you a price range to use to help you on your search for a home.
By having a pre-approval letter at the time you place an offer tells the seller you are a worthy buyer and ultimately helps speed up the application process.
3. Hire A Realtor and Shop for Your Home
Now that you have an idea of what you can afford, you can get out there and begin your search for the perfect home. A realtor who knows the area and understands your priorities can help you by reviewing the market, identifying the most likely houses, setting up appointments for viewing and handling negotiations.
Your role is to identify what you do and do not want in your home and communicate this to your realtor. To help you stay organized, you may find it helpful to create a checklist of home features you are searching for. Make several copies so you can fill it out for every house you see, noting anything you especially like or dislike.
4. Make An Offer
When you've found the perfect home, it's time to make an offer. You will work with your realtor to decide the purchase price and any conditions of your offer, which your realtor will negotiate with the seller. Once the negotiations are complete and the seller has accepted your offer, you sign a purchase agreement. This is a legal contract that defines various aspects of the sale including purchase price, down payment, type of loan and closing date.
The agreement should be conditional, allowing you to cancel if you cannot get a mortgage or discover major problems with the house. For example, you may also wish to set conditions pending an examination of the home by an inspector you hire.
5. Apply for Your Mortgage
You will now add information about the house you want to buy to the personal information you provided when you applied for pre-approval. Your lender will also ask you to provide any outstanding documentation that may be needed to complete the loan approval process.In order to determine the value of the property your lender may need an appraisal of the home, which we will take care of obtaining for you.
At this time, you will be provided many required disclosures about your pending mortgage application.It is important to sign and return them as requested to keep the process moving.Of course, your lender is always right there with answers to any questions you may have!
6. Commitment
When your loan is approved, you'll receive a letter of commitment from your lender including the closing date that was set in the offer to purchase. You should also receive a statement confirming the terms of your loan given at the time of application.
7. Closing
This is the meeting that makes it official! You, your lender and possibly your realtor and/or attorney will now meet at a title company with the seller and a title company representative. You will sign the mortgage note and the mortgage, provide proof that you have home insurance and pay your down payment and closing costs. When this meeting is done, congratulate yourself - you are now a homeowner!
