There are 5 crucial steps when buying a home, we are here to help you get there.
1. Prepare Your Finances
Find out what you can afford by taking a look at your income, debt, savings, and other financial obligations. You can use a home affordability calculator to understand what might work for you. Also, take note of your credit score, a general rule is for your mortgage to cost about 30% of your monthly income. And remember, most first-time homebuyers have a down payment of 6%.
2. Prequalify for the Right Loan
Contact your bank or financial institution to meet with a mortgage lender and discuss loan options and interest rates. Try to obtain a prequalification letter, this makes you a better candidate for home buying. You can also try to get prequalified for a mortgage, which is an offer to lend you a specific amount for a certain amount of time, typically 90 days. These are commitment-free and help show sellers you are serious and ready to make an offer.
3. Call a Real Estate Agent
Once you know what you qualify for, start searching for the right agent for you. Call Steve McKenna & The Home Advantage Team, we are ready to help you and your family find the right home. We are happy to answer any questions you may have; give us a call, send us an email, or fill out the form linked here. We look forward to hearing from you.
4. Lock in Your Mortgage
Once your offer is accepted, you have to apply for a mortgage. You tend to have between six to eight weeks to fulfill your contract, so act fast. You typically need to have a home appraisal done during this time as well. Once the application is submitted, your mortgage lender will send a loan estimate which includes the approximate interest rate, monthly payment, and closing costs. Take your time to review this document, your agent may help you as well.
5. Prepare to Close
After your mortgage is approved, you will receive a closing disclosure. This shows fees owed, review this carefully and reach out to your lender if there are any issues. Once the loan closes, the funds go to the seller and you are officially a homeowner, congratulations!
