Home Purchase Loans

Get Pre Approval

Start Searching

Move In

5 Steps to Buying a Home

There are many steps to buying a home, and if you are armed with the right approach, your new purchase should be a breeze.  Read the following 5 steps to buying a house to get a good understanding of important factors in your purchase.

 

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    Get a Loan Pre-Approval

    Most realtors require a pre-approval before showing you any homes. Aside from that, there are several reasons why getting a pre-approval should be the first thing you do. First, you’ll find out how much you can borrow, which has a lot to do with how much house you can buy. Find out your options from your lender. Lenders are generally looking for three important factors in determining your eligibility for a home loan:

    1. Your credit profile: Score and history are considered

    2. Your equity position: Amount of your down payment

    3. Your ability to repay the loan: Income sources and stability

    Good credit, a sizeable down-payment, and stable income are generally a good starting point, but not always a necessity. If you are lacking in one or more of these areas, don’t lose hope, compensating factors can be considered.

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    Find the Average Home Selling Prices in Your Desired Neighborhood

    Find out what houses are selling for in the area where you want to buy a home. Look at selling prices – not asking prices. You can get these from a real estate agent. When you find a house roughly like the one you want, ask for three “comparables” – recent sales of houses that are roughly your target house.

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    Find an Agent and Happy House Hunting!

    Some home buyers prefer to be very involved in the house hunting while others prefer to let the realtor do most of the legwork. Make sure you communicate your desires with your realtor. Once you have found a house you would like to make an offer on, a good faith deposit is generally requested to be sent along with a formal offer to buy. Once the offer is accepted by the seller, the clock starts ticking for your close of escrow. Make sure you give yourself plenty of time to complete purchase contingencies (such as home inspection and loan approval).

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    Prepare for the Closing

    Talk to your lender before making any large purchases or increasing your debt during this time as it could negatively affect your loan qualification. Make sure you keep all bank statement for at least the most recent three months handy. Avoid adding any large cash deposits to your account during this time to minimize over-scrutiny of your assets by underwriting.

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    Close of Escrow

    Prepare to sign final documents, distribute any necessary funds required for closing, and receive your keys. Congratulations, time to celebrate!

Home Purchase Loans

  • Get Pre-Approval

    Most realtors make note of your credit profile, planned down-payment size, and income.

  • Start Searching

    Search for homes in neighborhoods within your price range. Consult with your lender.

  • Move In

    Take out a loan, purchase your home, and receive your keys!

5 Steps to Buying a Home

Step 1:

Get a loan pre-approval. Most realtors require a pre-approval before showing you any homes. Aside from that, there are several reasons why getting a pre-approval should be the first thing you do. First, you’ll find out how much you can borrow, which has a lot to do with how much house you can buy. Find out your options from your lender. Lenders are generally looking for three important factors in determining your eligibility for a home loan:

1. Your credit profile (score and history are considered)

2. Your equity position (amount of your down payment)

3. Your ability to repay the loan (income sources and stability).

Good credit, a sizeable down-payment, and stable income are generally a good starting point, but not always a necessity. If you are lacking in one or more of these areas, don’t lose hope, compensating factors can be considered.

 

Step 2:

Find out what houses are selling for in the area where you want to buy a home. Look at selling prices – not asking prices. You can get these from a real estate agent. When you find a house roughly like the one you want, ask for three “comparables” – recent sales of houses that are roughly your target house.

 

Step 3:

Find an agent you feel comfortable with and happy house hunting! Some home buyers prefer to be very involved in the house hunting while others prefer to let the realtor do most of the legwork. Make sure you communicate your desires with your realtor. Once you have found a house you would like to make an offer on, a good faith deposit is generally requested to be sent along with a formal offer to buy. Once the offer is accepted by the seller, the clock starts ticking for your close of escrow. Make sure you give yourself plenty of time to complete purchase contingencies (such as home inspection and loan approval).

 

Step 4:

Prepare for the closing. Talk to your lender before making any large purchases or increasing your debt during this time as it could negatively affect your loan qualification. Make sure you keep all bank statement for at least the most recent three months handy. Avoid adding any large cash deposits to your account during this time to minimize over-scrutinization of your assets by underwriting.

 

Step 5:

Close of Escrow. Prepare to sign final documents, distribute any necessary funds required for closing, and receive your keys. Congratulations, time to celebrate!