Do you know the home buying process?

Buying a home is unlike any other purchase you’ll ever make. It’s not just a simple matter of finding the right house, handing over a pile of money, and moving in the next weekend. There are plenty of dos and don’ts of buying a home. There’s also a step-by-step process that you’ll want to follow to ensure you finance the perfect home and end up with budget-friendly payments you can afford.

Step 1: Check Your Credit
This one you can do on your own. Visit annualcreditreport.com and get a copy of your report from one or more of the three reporting agencies. Once you have a report, look for duplicate accounts, incorrect information, and other issues that could affect your overall creditworthiness. If you find any issue, file a complaint with the reporting agency and request the error be fixed. 

Step 2: Chat with your favorite First Tech Loan Officer
A mortgage loan officer will take a look at your credit score, highlight all of the costs, and supply you with a cost estimate. This document shows you the interest rate and overall cost of the loan, as well as the estimated monthly payment.  

Once you’ve discussed all your options, it’s time to get pre-approved. A pre-approval is an underwritten commitment to lend and will allow you to make an offer when you find the right house. This pre-approval is based on your income, assets and credit that have been reviewed to make the decision. During this part of the process, it’s important to be completely candid and open with the lender about your finances. 

Step 3: Start Shopping
Having a real estate agent that knows the area where you want to buy can make this part a lot easier. Plus, they’ll be your advocate when you make an offer. Learn how to find the real estate agent that’s right for you. 

Step 4: Make an Offer
Because you’re pre-approved, you know how much home you can afford. As long as you stay within the boundary of your pre-approval, you’re free to make any offer you want. However, the amount you offer cannot exceed the value of the home. If the homeowners accept your offer, your loan officer will begin the paperwork portion of the home buying process.  

Step 5: Paperwork
At this point, you’ll meet with your loan officer and they will ask for anything not already included with the pre-approval. This could include updated bank statements, tax records, pay stubs, and proof of employment. You’ll also be asked about the property you want to purchase and the type of loan you’re choosing. The lender will order an appraisal to ensure the value of the home reflects the amount you intend to pay for the property. 

First Tech Tip: The faster you deliver information or documents requested by the lender, the sooner your mortgage will be finalized.

Step 6: Close the Loan
Finally, your documentation will be sent to an escrow or title company, and you’ll be sent a closing disclosure that includes your monthly payments, fees, closing costs, and loan terms. 

Together with that company, you’ll schedule a time to sign all the loan documents, pay your closing costs and other fees as needed, and get the keys to your new home. 

Step 7: Move-in Day 
Pack your things, gather some friends, rent a moving truck, and spend the weekend moving boxes, and furniture. Then spend the following years building your future.