The Purchase Process
Step 1: Get pre-approved
Now that you have decided that you want to buy a home, it is important to determine what payment you can comfortably afford. There are tools that give you a general idea of what your payments would be with the data you input, but to get a better idea of your price range for homes you should get pre-approved. A pre-approval is beneficial in many ways. It not only gives you an idea of what loan amount and purchase price you can afford, it also strengthens your offer to the seller and the seller’s real estate agent. By getting pre-approved, you are getting a jump start on the approval process. Once you find the home you want to make an offer on you are already a few steps ahead.
Step 2: Determine which loan best suits your needs
There are many loan options available. With all the choices offered, you need expert advice to help you choose the right loan for your situation. Be sure to visit our loan options page for information on each type of loan. if you have more questions, you can call one of our home buying experts!
Step 3: Contact a real estate agent and start shopping
Once you have been pre-approved you should work with a realtor to view homes for sale in the areas you would like to live in. When you find a home you and your realtor will draw up an offer, complete a purchase agreement and send it off to the seller for review. When the offer is accepted you will let us know so that we can continue on in the process.
Step 4: Review and update your loan application
After we have updated your file, your loan officer will go over the details of your loan again. We want to make sure that you understand every detail of your loan program and answer any questions you have before moving forward. Also, we likely need to collect some updated information and additional documents from you.
Step 5: Home inspection and appraisal
It is advisable to schedule a home inspection with a professional who will walk you through the property to look for any red flags and other items that may need to be fixed. It is a small investment for some peace of mind. Any major issues would need to be addressed before the close of escrow date. While your loan is being reviewed and processed, we will schedule an appraisal appointment to confirm the value of the home. The appraisal is a requirement to determine that the home is worth what you are paying for it.
Step 6: Loan approval, signing, and closing
Once we have everything we need, your processor will submit your file to the underwriting department for loan approval. After your loan is fully approved (also known as cleared to close), the loan documents will be prepared for you to sign at settlement. When the closing is completed you will be the proud owner of your new home.