Homebuying Process: What to Expect

Taking the jump into homeownership can be a scary endeavor, especially if you’re unfamiliar with the entire process. Know what to expect before you can call your new house your home.

Get Preapproved for a Mortgage. While this step is best done before you begin searching for a home, you can also start the process while you’re house hunting. Applying for a preapproval letter from a mortgage lender can give you a rough estimate as to how much a lender can offer you for a mortgage. All you need is to provide the lender with your income, credit history, debt, assets, and down payment amount.

Find a Home and Make an Offer. The fun part about buying a home is actually locating one. Reach out to your real estate agent and visit a few properties. Once you find your dream home, it’s time to make an offer. Your real estate agent should know how to structure the offer and include contingencies if needed.

Complete the Loan Application. Even though you’ve completed the preapproval process, you still need to fill out an official loan application. You might need to provide official documents that include pay stubs and bank account information. You will receive a loan estimate within three business days that provides the exact rates and terms of the loan.

Prepare for Closing Day. This is the day you’ve been waiting for: the house is almost yours. The lender sends final documents to the title company or the closing attorney. Look over the closing disclosure, which is similar to the loan estimate, but confirms these costs. Once everything looks good, you’ll receive the keys.

Don’t miss out on your dream home because you didn’t do your homework. If you do have questions, know that you’re not alone in the process. Reach out to a trusted real estate professional for additional information and support.

Sources: Credit.com, Themortgagereports.com, Money.usnews.com

Courtesy of Michael Fawver
License: NMLS #231944
Sr. Loan Consultant
Preferred Rate NMLS ID 1850
Phone: (562) 754-4744
[email protected]