Whether you’re a first-time homebuyer or an experienced homeowner, this guide can help you through the mortgage process. It will help make your homebuying experience much easier. While this doesn't provide for every step, it will surely get you off on the right path.
WHAT DO I DO BEFORE I START SHOPPING FOR A HOME?
Before you look at houses, find out how much you can borrow. The best way to do that is to get prequalified by a lender. If you have already started looking at homes be sure that you receive a conditional approval.
Here’s a list of typical documents and data you’ll need to provide:
A Good Real Estate Agent Is Your Partner In The Homebuying Process
You may be working with them for several months so it’s important to find someone with whom you’re totally comfortable.
An agent will:
Work closely with your mortgage lender and real estate agent once you find the perfect home and your offer is accepted.
FUNDS TO CONSIDER
Earnest Money: Earnest money is good faith measure that is given at the time an offer as accepted, typically within 48 hours. In most cases, the amount given is close to 1% of the purchase price. ($125,000 = $1250)
Money For Down Payment: This will be determined upon the type of loan you qualify for and how much money you are able and willing to put down. It can range from 3%-20% of the purchase price depending on the loan you obtain. Talk with your lender to verify what type of loan fits you best.
Closing Costs: Typically range from 1%-4% of the loan amount and some costs can be negotiated into the sales contract.
Inspection: Inspection fees vary by the size of the home. For a home ranging between 1,000-4,000 square feet, you can anticipate between a $300-$400 fee.
Surveys and Home Warranties: If desired as part of the purchase, these can be negotiated as to whom will be responsible to pay for.