STEP ONE

Determine whether or not you are ready to buy a home

• Income & Employment Status - your lender will want to see how much money you make, your work history, and reliable income sources.

• Debt-to-Income Ratio - this is used to evaluate your loan application & helps your lender to see how much mortgage debt you are able to take on.

• Liquid Assets - cash funds readily available to pay for a down payment and closing costs in addition to paying for regular living expenses.

• Credit Health - Take steps to improve your credit score & reduce your debt to prepare for a mortgage. Better numbers mean better loan options with lower interest rates.

• Timing - Decide whether it is a good time to buy a house or not depending on your personal life and market conditions like economic health & current mortgage rates.

STEp TWO

calculate how much you can afford

A trusted lender can guide you in determining what your buying power is.

step THREE

Save for a down payment & closing costs

• Down Payment - a one time payment toward the purchase of a home due at closing, can be as little as 0% depending on loan type.

• Closing Costs - costs in addition to your down payment due at closing - usually 2-3% of total purchase price - that will include items such as transfer fees, deed recordings, taxes, insurance, title expenses, & HOA fees (if applicable), etc.

• Other Costs - specialized inspection fees that you may want on a property and may be required depending on your loan type

get pre-approved for a mortgage

Apply with your lender to get pre-approved. This process typically involves a credit check and answering questions about your income, assets, and the home you are interested in buying.

• Conventional Loans - these are not guaranteed or insured by the federal government, and usually requires at least a 3.5% down payment

• FHA Loans - these are backed by the Federal Housing Administration

• VA Loans - loans for veterans, active-duty members of the Armed Forces, and qualifying surviving spouses (insured by the Department of Veteran Affairs)

• USDA Loans - these help people in rural and suburban areas buy homes that have specific eligibility rules.

find the right real estate agent for you

Your real estate agent (that’s me!) is your representative in the home buying purchase transaction. I will hand walk you from the first interaction all the way to taking possession of your new home. I will protect your interests, help you avoid costly mistakes, and help guide decision making on this investment. We will work together to navigate the housing market & your unique situation in order to accomplish your goal!

begin house hunting

Make a list of top priorities depending on whether you are looking for a starter home, forever home, or investment property.

Some things to think about:

• Price

• Square Footage

• Home Condition

• #of Bedrooms & Bathrooms

• Property Value Trends

make an offer on a house

In our current housing market you will need a skilled professional in order to come to an agreement with a seller.

Important elements in any offer:

• Contingencies

• Purchase Price

• Terms of Possession

• Due-Diligence

• Performance Deadlines

get a home inspection

During this step in the process, professional inspectors will thoroughly examine the property & present a detailed report of their findings. Typical inspections can include:

• General Home

• Termite

• Radon Gas

• Other Environmental Inspections

• Specialized (Structural, roof, septic, electrical, plumbing, etc.)

get a home appraisal

This is a professional assessment that determines the current value of the property you want to buy. Many lenders require appraisals in order to determine the value of the home & your loan.

final walkthrough

Even if you have 100% committed to a property, always do a final walkthrough to check that the repairs have been made & the property was cleared.

close on your new home!

Three days before closing, your lender will give you a Loan Estimate that summarizes what you need to pay at closing and your loan details before receiving your Closing Disclosure. After reviewing the disclosure, attend your closing meeting and bring a copy of your ID, copy of your Closing Disclosure, & proof of funds for your closing costs.

You will then sign a settlement statement listing all of the costs related to the sale. While you sign this document, you will pay your down payment & closing costs, sign the mortgage note, and sign the deed of trust.

congratulations! you’re a home owner!!