A Guide to the Home Buying Process

By: Mary Lynn Johnson & Stacy Dyreson - Mortgage Lenders

Owning a home is a significant milestone in a person's life, often a cherished dream for many. Given its importance, it's wise to familiarize oneself with the details of the home buying process. To assist, here is some guidance through a comprehensive mortgage guide put together by our experienced Mortgage Lenders.

1. Get Pre-qualified by visiting your Local Lender

This is a great first step to take before searching for that dream home.  This will tell you how much house you can afford.  Realtors require a Pre-Qualification Letter to go along with any offer you may want to submit.  This application can be completed online, in person or over the phone.  If you already have your application completed you can get the pre-qualification letter right away. 

Along with the application, you will be asked to provide the following:

• Two years W2s
• Current paystubs showing a full month’s worth of income. If you are paid weekly, you will need 4 paystubs. If you are paid bi-weekly, you will need 2 paystubs.
• Current assets or bank statements – this is to prove you have the funds available for the down payment and closing cost.

Once your application is completed your lender will confirm the following:

• How much you can afford
• How much money will you need for the down payment and the closing cost         
• Options as to which mortgage program fits your needs best
• Guide you through the full mortgage process and be there to answer any questions you have along the way

2. Looking for a House

You can look for a home on your own or you can use a realtor to help you through the search process.  Realtors are the experts in finding the right home and neighborhood you are looking for.  They can also assist you with writing the offer to purchase which is the 1^st step for the mortgage process to begin.  If you do not have a realtor you can have an attorney help you to write an offer.

3. Mortgage Process:

With a signed Offer to Purchase from both you and the seller, the mortgage process kicks off.

You’ll provide a copy of the Offer to Purchase and Condition Report to your lender to begin updating your application. They'll then issue a Loan Estimate detailing all associated costs for the property purchase.

Now that you have an accepted Offer to Purchase, it's wise to start shopping for homeowners insurance now. Determine the annual premium for insuring your new home. Inform your chosen insurance company of your lender's details so they can list the lender as the primary mortgage lienholder and send a copy of the binder promptly.

Ensure all your income documents are submitted to your lender, including recent paystubs and updated asset statements if necessary. This may be a necessary step if the ones submitted during the pre-qualification period are over 30 days old.

Once the appraisal confirms the property's value aligns with the purchase price, the loan's interest rate can be locked.

The seller will initiate completing the title work to show that the property is free to sell without judgements and/or liens attached.  Usually, the Title Company will manage closing details.

Upon scheduling the closing date, you'll receive a Closing Disclosure from the lender, outlining final numbers for your purchase. Coordinate with the lender on when to sign the loan paperwork, either beforehand or at the title company's office on the closing day, based on your preference.

Maintaining open communication with your lender is essential and don't hesitate to ask any questions. Our goal is to make this an easy and hassle-free process for you.

If you are looking to purchase your new home, reach out to any of our seasoned Mortgage Lenders to help you find the perfect lending solution for your home needs.