How to prepare to buy a home

If you’ll be buying a home in the future, it’s good to start getting ready now.

By understanding the process and preparing, you’ll have better options!

Call us at 603-225-5626 to talk it through or read on and click around for great info!

Step 1: Determine what you can afford

What are you paying for rent now?  How much more can you afford to pay each month?  Set up a budget.

Consider additional costs of homeownership that you may not currently have.

Step 2: Check your Credit Report

Make sure your credit report is accurate and your profile and scores meet the criteria needed to obtain a mortgage loan.

Step 3: Get Educated & Identify your options

There are many resources available to you including online home buying courses.   You will need to communicate with a mortgage loan officer to get details specific and unique to your needs.

Step 4: Get Prequalified

Work with a loan officer to get prequalified.   You will need to provide information like paystubs, W2s, tax returns & bank statements.

Step 5: Find the right house and agree to purchase terms

Work with a REALTOR to find a home you love; be prepared to negotiate terms (your REALTOR and loan officer will assist)

Step 6: Apply for the Mortgage

By the time you get to this step, you should already have shopped for a mortgage and have a firm idea of the type of loan you want.  Even if you have preapproved for a mortgage, once you have contracted to purchase a specific house, you will need to update your application to the specifics of the house you are purchasing.    Your information will be reviewed by an underwriter and your lender will issue a commitment to lend.

Step 7: The Home Inspection & Appraisal

You will want to hire a home inspector to go through the home and identify maintenance issues so you can be prepared for successful homeownership.  If immediate repairs are required, you may be able to negotiate for the Seller to take care of these issues before closing.  Once you are satisfied with the property’s condition, you will be required to pay for an appraisal.  The lender will choose the appraiser and the appraiser will provide a report indicating the value of the home and if it meets the standards for the type of mortgage you are seeking.

Step 8: The Closing

Before your closing can be scheduled, any outstanding requirements made by the mortgage company must be satisfied.  Work closely with your mortgage lender to get your file cleared to close.   Shortly before your closing, you will do a “walk-through” (visit the property one last time before closing to confirm the condition is satisfactory).   At closing the title transfers from the seller of the property to you.  Your REALTOR will be there with you!   After closing, if you have any questions about your loan, your loan officer will be happy to continue to assist you.

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