Looking For Mortgage Advice?
Find Your Home
Purchase Your Home
You have found the right place!
We are here to help you navigate the home loan process with our comprehensive home loan guide and mortgage terms glossary. Here are three steps to get you started on your journey to homeownership:
First, plan your budget. Determine what you can afford to spend each month on a mortgage payment by looking at your income, expenses, and other financial obligations. This will give you a realistic idea of what price range you can comfortably afford.
Next, find your home. Consider the location, size, and features that are most important to you. Be sure to work with a real estate agent who can help you find properties that fit your criteria and budget.
Finally, purchase your home. Once you have found your dream home, it’s time to finalize your mortgage and close the sale. This is where our home loan guide and glossary can be especially helpful, as they will explain the various mortgage options and terms you will encounter throughout the process.
With our guidance, you can confidently navigate the home loan process and become a happy homeowner.
Plan Your Budget
Check your Credit Score
Check your credit report from TransUnion, Equifax, and Experian to improve your chances of getting mortgage approval. Make sure to thoroughly review each report and correct any errors well before applying for a mortgage.
Regardless of your credit score, keep the following tips in mind:
- Make no large purchases before applying for a mortgage.
- Keep up with your credit card payments to stay current on your bills.
- Don’t use up all your available credit because this can harm your credit score.
Select a Lender
Speak openly with your loan officer about your budget to decide on a comfortable monthly mortgage payment. They will review your finances and calculate your debt-to-income ratio (DTI). Create a budget based on your DTI that includes housing, recurring debt, food, transportation, insurance, utilities, down payment, and closing costs. Most conforming loans require a DTI of no more than 43%, but you may still qualify for a loan if your DTI is higher.
Make a Down Payment Plan
While 20% is commonly recommended as a down payment for buying a home, it’s not mandatory. The required amount depends on the loan type. Researching different loan options can help you find what works best for you. First-time homebuyers may qualify for loans with smaller down payments, such as FHA loans which may require only 3.5%. Other loan programs, like VA and USDA loans, offer low or no down payment options too. Larger down payments can lead to lower interest rates and long-term savings.
Find Your Home
Find the right REALTOR
When it comes to buying or selling a property, finding the right real estate professional can make all the difference. This person will have your best interests in mind, working tirelessly to find you the right property, negotiate on your behalf, and guide you through the closing process. A good real estate professional will take the time to understand your needs and preferences, answer your questions, and provide you with valuable insights into the local market.
Make a List of Must-Haves
When finding your dream home, it’s important to prioritize your must-haves. What are the aspects that are most important to you? Is it the number of bedrooms? Proximity to work? Wood floors? A backyard or garage? Make a list of your non-negotiables and concession points – aspects that would be nice to have but that you would be willing to compromise on for your must-haves. And remember, your priorities may shift as you start your search, and that’s okay too! Keep an open mind and remain flexible throughout the process.
Research and Visit
To find your ideal home, it’s important to do your research and visit different neighborhoods to see what homes in your price range look like. Take the time to explore the areas that interest you, and visit them at different times and days to get a feel for what it’s like to live there. This will help you narrow down your options and find a home that meets all of your needs. Be sure to take notes and pictures during your visits, and don’t be afraid to ask questions or request more information from your real estate agent.
Purchase Your Home
Miscellaneous Expenses Fund
It’s common for new homebuyers to be caught off guard by hidden expenses that pop up after they’ve made their purchase. These costs can range from property taxes to HOA fees, and the exact amount will depend on where you live. To avoid this, it’s a good idea to start preparing for these expenses by setting up a separate account. By doing so, you’ll be taking a proactive step towards homeownership and setting yourself up for success in the future. Your future self will be grateful for the foresight.
Gather Documents
To make things easier in the long run, start gathering all the required documents now. Depending on your situation, you may need to gather proof of income, assets, personal identification, pay stubs, tax returns, bank statements, previous addresses, and social security numbers. As you collect these documents, take the time to review and understand them. This will help you become more familiar with your financial situation, stay motivated with your down payment savings plan, and keep your debt-to-income ratio low.
Offer and Inspection
Making an offer is the process of officially stating your intention to purchase the property and negotiating the terms of the sale with the seller. Once your offer is accepted, it’s important to get a property inspection to ensure that there are no hidden issues or repairs needed that could end up costing you more money down the line. An inspection will give you a better understanding of the property’s condition and allow you to make a more informed decision about whether or not to move forward with the purchase.