Your FREE roadmap features the essential steps you should take to find and buy the home you’ve always wanted.
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Home Buying Roadmap: How to Buy a House in 11 Steps
This Roadmap Contains:
- Uncover what to expect
- Calculate how much house you can afford
- Find out when to get pre-qualified
- Explore how spending can impact your mortgage application
Buying a house is a major commitment. Before you start shopping for the home of your dreams, you’ll need to make sure you’re ready to become a homeowner. Review our roadmap to discover what steps you should take to find and buy the home you’ve always wanted. If you have questions
along the way, we are here to help!
1. Save for the Down Payment & Closing
- While a 20% down payment may be the goal, many mortgage options require less than 5%.
- Check with your trusted local lender to see what first time home buyer programs are available.
- Closing costs vary. You can estimate you’ll pay an additional 3 - 6% of the home value.
2. Review Your Credit Report
- Now is the time to correct any errors.
- Visit https://www.annualcreditreport.com for your free report.
- You can get a free copy every 12 months.
3. Calculate How Much House You Can Afford
- Use a mortgage calculator to find an affordable monthly mortgage payment that fits your budget.
- Adjust the down payment amount, loan term, interest rate, and loan amount to see how your payment is impacted.
4. Get Pre-Approved
- Work with your trusted local lender.
- Determine the right mortgage for your needs.
- Get pre-approved to determine how much house you can afford.
- Getting pre-approved and getting pre-qualified are two very different things. Explore their differences in our video.
5. Avoid Major Purchases & Additional Debt
- Don’t make any large purchases.
- Don’t apply for any loans or credit cards.
- Doing so may impact factors your lender will consider (DTI ratio) prior to the final mortgage approval.
6. Find a Real Estate Agent
- Ask family members and friends for recommendations.
- Show them your preapproval letter.
- Typically the seller pays the real estate agent 3% of the purchase price.
- Buyers usually work with a real estate agent for free.
7. Start Your House Search
- Your real estate agent will help you find home options within your budget.
- Make a list of top priorities and rank them by priority level.
- See plenty of homes, in person and online, before you commit to a property
8. Make an Offer/Negotiate
- An offer must be submitted in writing.
- Your agent typically writes the offer on your behalf.
- The seller can respond by accepting your offer, rejecting your offer, or giving a counteroffer.
- Negotiations may take some time.
9. Home Inspection
- While lenders may not require a home inspection, it is a good idea.
- You should receive a report of possible issues.
- Negotiate with the seller to correct the problems before you close.
10. Financing
- Order an appraisal.
- Purchase homeowners insurance.
- Receive a clear to close from your trusted local lender.
11. Closing
- Complete the final walk-through.
- Sign closing documents.
- Get the keys to your new home.
Middlesex Federal Can Help!
If you are ready to start your home-buying journey, Middlesex can help you get started. Explore our mortgage options and our Complete Home Buying Checklist to learn more about the home buying process. Please contact us with any questions, we are here to help!