The Home Buying Process

Check Your Credit Report & Score
Before applying for a mortgage, check your credit report at Annualcreditreport.com and your score on free sites like Credit Karma. A higher score (300-850) generally helps you qualify for better loans. Review your report for errors and dispute any, as this can improve your score.

Determine What You Can Afford
Use online mortgage calculators to estimate an affordable monthly payment. Remember to include a down payment, closing costs, fees (like attorney and appraisal), and potential home improvements. You don’t need 20% down—there are low and no-down-payment options available. A home loan expert can help clarify loan options, closing costs, and fees.

Find the Right Lender & Agent
Research mortgage lenders through recommendations and online reviews, and talk to a few to find a good fit. Getting pre-approved gives you a clear loan estimate and makes your offer stronger to sellers.

Search for Your Ideal Home
List what you want in a home—number of rooms, kitchen size, storage, and outdoor space. Consider the neighborhood, schools, commute, safety, and property value appreciation.

Make an Offer
Once you find the home you want, make an offer, typically around 5% below the asking price. Be ready for negotiation, but aim to reach a fair middle ground. Once agreed, place an earnest deposit in escrow to show good faith.

Choose the Right Mortgage
Understand the three main mortgage types:
- Adjustable Rate (ARM): Short-term fixed rate, then adjusts yearly based on market rates; ideal for short-term homeowners.
- Fixed Rate: Long-term fixed payments (15-30 years); suited for those who prefer stability.
- Interest-Only: Pay only interest initially; helps cash flow, and you can build equity through appreciation.

Close on Your Home
Before closing, get a home inspection to ensure it’s in good condition. Confirm the closing date, and understand all related costs (down payment, fees for title, appraisal, attorney, inspection, and any points). Your lender will clarify these costs.

Move In!
You’re ready to move! Whether you hire movers or enlist friends, start settling into your new home. With preparation and the right support from a lender and agent, buying your first home can be a smooth and enjoyable experience!