Buying overview -> 5 initial steps

5 initial steps

Following these five steps will simplify and clarify
the mortgage process when buying a home.

1. Identify a lender

Identify a lender with whom you want to work.

2. Review loan options

Become familiar with the loan options available, and how to choose the right one for your situation.

3. Figure your costs and expenses

Work with your lender to figure out all the costs of buying – the down payment and closing costs - and the monthly expenses (mortgage, property taxes, homeowner’s insurance, etc.), as well as the tax benefits of having a mortgage.

4. Determine your purchase price

Find out from your lender the loan amount/purchase price for which you can qualify, and how much you feel that you can comfortably afford, often not the same thing.

5. Get preapproved

Get preapproved by your lender.

IMPORTANT NOTE: The professionals you will work with – your lender, your real estate agent, and your escrow officer – have covered this territory many times and may tend to move quickly over issues that you would like to have explained. Don’t ever hesitate to ask questions as you move through this process.When you feel it’s time to make the shift from casually visiting open houses and checking out real estate sites to being ready to buy, you will be ready for step one: identify a lender. You will also need to find a real estate agent with whom you want to work. The single most important criteria in both of those relationships is that your voice be heard. You want to be supported by professionals who really listen to you, and give you solid, realistic guidance based on your needs, desires, and life situation.