Before:

The very first thing you should do before starting to look at homes to purchase is to get prequalified with a mortgage lender such as Legacy Mortgage.  You will need to gather your important documents, such as income and asset documents and then find the right mortgage lender for you. Once you do that you can sit down with your loan originator and talk about how much of a payment you can afford, what type of loan is best for your financial situation and how much money you need to set aside for a down payment.  These three things will help you determine the price range of home you should be looking for. Once you have been pre-approved for a home loan then your loan originator can provide you with a pre-approval letter.

Tip: Sending a pre-approval letter with your home purchase offer helps show the seller that you are serious about the offer you are making and that you are qualified to purchase their home.

The next step is to find a Real Estate Agent.  A realtor will help you find houses in your price range in the areas you prefer to live.  Realtors are very valuable in the home buying process, as they will schedule appointments for you to view homes, help you negotiate the purchase price, coordinate home inspections, and write up your offer letter.  They will be the go-between for you and the seller.

Tip:  Be sure to talk to your realtor about potentially asking the seller to pay your closing costs or asking the seller to make repairs on the home that you would like to see made prior to closing.

During:

Once you have an accepted offer then it’s time to work with your loan originator to get the loan process started. The loan originator will prepare your initial loan documents, such as your loan application and loan estimate, as well as work with your realtor to get copies of the purchase agreement, etc.

Tip: If anything has changed since you were pre-qualified for your home loan be sure to let your loan originator know asap, as they may require more documentation from you.

This is also the time when you will need to consider getting a home inspection, as a home inspector can check for any potential issues with the home. Your realtor will help you get a home inspection set up if you choose to have one.

Once you have gotten a home inspection and have officially started the loan process then it’s time to get an appraisal on the property. Your loan originator will coordinate with an appraisal management company to get this ordered. The appraiser will determine the value of the home you are purchasing and also list any repairs that need to be made prior to closing the loan.

During the loan process your loan originator may ask you to provide additional documents, such as updated bank statements and pay stubs. Typically you will be notified if any additional documents are needed while you are waiting for the appraisal to come in. Here at Legacy we try to ask for everything up front so that our clients don’t constantly have to bring in more items throughout the loan process. We try to make things as easy as possible for you, our client.

Once your loan is all approved then it’s time to get ready to close. At this point you will need to schedule a final walk-through of the home with your realtor. They will walk-through the home with you to make sure that no new repairs are needed and that the home is being left in the agreed upon condition that is noted in your purchase contract.

The very last step in the process is signing your closing documents. You will typically sign your closing documents at an escrow company’s office. The escrow officer will review all of the documents with you, answer any of your questions and have you sign all of the necessary documents to become a homeowner. Typically your realtor and loan originator will also be at your closing in case you have additional questions.