So, you’ve decided now is the time. You’re ready to take the plunge and move into a new home. Congratulations! This is an exciting time, but for some homebuyers, the process can feel a bit overwhelming. To avoid that, we have created these steps to guide you through the process and ensure a smooth home-buying experience.
Research before you start
In order to start the homebuying process off on the right foot, you’ll want to nail down some background information:
- Where do you want to live?
- What is the property value for homes in that area?
- What is your budget?
- How much are you comfortable putting down?
- What is your ideal timeline?
Check your credit
Credit scores are very important when it comes to getting approved for a mortgage. Ideally, you want your score to be as high as possible when applying for a mortgage loan. If your score is not where you want it to be, here’s how you can improve your number:
- Pay bills on time
- Pay off credit cards
- Don’t open new credit cards
- Don’t make any large deposits
- Don’t lend, sell, or borrow
- Don’t do anything out of the norm involving bank account activity
Shop around for your mortgage
In most cases, borrowers are referred to their bank when getting a mortgage loan. It is extremely important to get a second opinion from other lenders and brokers to ensure you’re getting the best rate at the best cost. Loan Pronto is all digital, has no lender fees, can have your loan closed in as little as 14 days, and beat the big banks 9/10 times. By shopping around, you can save yourself a multitude of time, and thousands of dollars. Get a free 30-second rate quote here.
Some homebuyers make the mistake of confusing a pre-qualification with a pre-approval. A pre-qualification is when the borrower estimates their figures, so the lender goes off these numbers without actually running reports. It isn’t official. Getting pre-approved means numbers have been run, so everything on the document is factual. This document can put you in the front of the line when making an offer on a home. Learn more about the difference between pre-qualified and pre-approval here.
Find a home
This is when it gets fun, because it’s time to find your perfect home! While it’s easy to get carried away, be sure to stay within your budget to ensure no future issues. Once you have found a house, work with your real estate agent to put in an offer that makes sense. Once an offer is made, work with your mortgage company to find out which loan is right for you, and then arrange an appraisal.
Close and move in
Finally, you have made it to the end. This is where you will schedule a closing date to sign all the paperwork and make it official. Once the closing is completed, you are ready to move into your brand new home!
Let’s get started
Use our free mortgage and amortization calculators to determine your monthly payment, including mortgage insurance, taxes, interest, and more.
Originally published April 27, 2018, updated August 23, 2022.