Process of Buying a Home - For beginners!
Buying a home for the first time is a huge step. For every other huge step in our lives, we get help from trained professionals i.e. doctors, coaches, college admissions counselors, etc., but many people try to figure this one out on their own! That’s where I come in—as a licensed mortgage loan specialist, I’m here to help you through every step of the process. Want to know what the path ahead looks like? Read on.
Step 1: Get preapproved.
Ideally, you’ll have 2 years of employment history, current income info, and your bank info (we can connect directly to your bank, like many budgeting software that do not affect your activity). I’ll review your credit, income, and assets, and draw up multiple options of financing solutions for you. Once I’ve gone over everything, we’ll discuss options and you’ll receive a preapproval letter to take to your realtor.
Step 2: House Shopping
Once you find a realtor you love, thus begins the long game of finding houses that look great online and then going to see them in person. KEY: Don’t open any new credit! This is SUPER IMPORTANT, and a lot of home purchases have fallen through because people forget this very important part. You qualify for your loan based on the credit profile that we receive at the time of your application. Any changes to that profile could endanger your loan, so call me before you take out any debt! What counts: car loans, store credit cards, etc. If you have to give your SSN to get it, don’t!
Stay within your budget: Through our conversations, we’ll talk about what you want to spend on your mortgage each month, what home upkeep expenses can look like, and what your future plans look like. If we spoke about an upper limit for comfort, stay there! Even if you’re qualified to buy more, you’ll appreciate it in a few years when you can actually afford to take vacations.
Step 3: Make an Offer
Your realtor will negotiate terms. They will know the terms of the price you want to pay, and they’ll write the contract using their knowledge of the local real estate market.
Step 4: Under Contract
Let the games begin! We will start collecting any necessary documents that we didn’t during the application process, and you’ll receive an official loan estimate. AGAIN, DO NOT OPEN ANY NEW DEBT (as previously discussed)
Appraisal – You will pay a fee for an appraisal of your pending home. This ensures that we can match the value of the loan to the collateral that is the house. This is done through a third party that we contract with.
Processing and Underwriting— We will stay in contact with any documentation we need from you through the Equity 247 portal, and you will receive weekly follow up emails. Underwriting will return with list of conditions that must be satisfied for closing
Step 5: Clear to Close
You’ll be notified when everything is set and ready! I’ll finish up any last bits of the process while you start packing.
Step 6: Closing Day
This is the best part—the day you get your keys! You will likely bring a check for the pre-agreed closing costs and down payment, and you (and anyone else on the mortgage with you) will sign the contract with the seller(s). It’ll go by in a blur, then you move in!
Step 7: 30 days after closing
You’ll get a call from me reminding you how to pay your first month’s mortgage payment, and I’ll answer any lingering questions you might have.
Step 8: AKA The Epilogue
I will be following up with you on your birthday and your loan anniversary every year for the life of your loan to check in and see what I can do to help you continue to reach your financial goals.
Brag about it: This is my favorite part, where you get to brag about your experience to your friends and family. You will have successfully come away with a positive home buying experience with less stress than many of your peers and family members. Know someone trying to move to the house next door? Tell them to give me a call so that you can spread the joy of buying a home with Equity Resources!