Purchasing a Home
Buying a home is a big financial commitment, but it doesn't have to be stressful. Use this article as a guide to help make your home buying experience a little easier.
Calculate how much home you can afford
Any way you look at it, the decision to buy a house is yours and yours alone. First, make sure that it's financially feasible.
Can you pay the up-front costs of purchasing a house and the ongoing monthly mortgage and other living expenses?
Using tools such as a mortgage calculator can help you understand how much you should budget for your new home.
Find the right loan for you
It's time to decide on the right loan for you.
Use our Loan Consultant tool to determine which products and rates best match your needs.
Get pre-approved for a loan
Pre-approval means filling out a loan application and providing all your salary and credit information. The lender then checks your assets and pre-approves your capability to get a loan.
You can present the seller with your pre-approved loan document when you find your dream home. This document shows them that you are serious about buying their house and have already been pre-approved for financing.
It could make the difference between getting the house you want or watching another bidder step in with a pre-approved loan and snatch that house away. Pre-approval is good for 120 days and depends on the appropriateness of the property you want to purchase. Fees, like credit reports, may apply.
Find a home and make an offer
You've found a house you love. It has the perfect living room or playroom you've always wanted for kids. But it's not yours yet. First, you have to make an offer in writing and submit it to the sellers. Writing and submitting an offer is usually done through your agent. Typically, offers are accompanied by your earnest money, which is a pre-determined amount of money, demonstrating that your offer is "in earnest."
Follow the advice of your agent or lawyer when deciding how best to make your offer. Here are examples of some things your offer should include:
The price you're willing to pay
When you want to move in
What kind of inspections you'd like to have (structural, electrical, plumbing)
If your ability to buy the house depends on your ability to get financing (which is taken care of if you're pre-approved by us)
The amount of time both you and the seller have to make all these things happen (usually 30 to 60 days)
The seller usually has 24 to 48 hours to consider your offer or make a counteroffer. A counteroffer means they agree to the terms you offered, they want to sell you their house, but they want a change.
Inspections
It is always wise to make your offer "contingent on inspection," meaning that your offer isn't valid until a qualified home inspector has carefully examined the home. The home inspector will take a critical look at various aspects of the house, including:
Foundation
Plumbing
Heating and cooling system
Electrical system
Roof
Windows and doors
Siding
Exterior grading (to make sure water drains away from the house)
Closing
To close the deal on your house, you will meet with a representative of the escrow company who is handling your loan. Once the title is recorded, ownership will transfer to you.