Purchasing

Take the Guesswork Out of Financing When Purchasing a New Home

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Becoming a homeowner comes with a lot of rewards, as well as added responsibility. Deciding to make such an important purchase is specific to your lifestyle. Here are some benefits and considerations you should discuss with your Loan Officer before you begin the buying process.

Benefits of Homeownership

Build Wealth

Although home value may increase or decrease short term, if you decide to stay in your home long term, it could gradually increase in value. This would provide you with a significant return on your investment.

Build Equity

Equity is the amount of money your house is worth minus what you still owe. Every time you make a mortgage payment, the amount you owe reduces and increases overall equity. This is beneficial, because equity can be accessed and converted to cash. See our Refinancing page to learn more.

Tax Deductions

As a home owner, your mortgage interest and property tax payments may be deductible from your federal taxes and possibly state taxes.* *Consult a tax professional for more information.

Strengthen Credit History

Making monthly loan payments is evidence that you are a responsible borrower, which builds your credit history. This will help you take out loans for other purchases, such as a car or even home renovations.

Create the Home You Want

Owning a home gives you the freedom to create your dream living environment. Whether you want to update appliances, paint rooms, landscape a yard, own pets – you will have a house that is completely yours to customize.

Questions to Consider as a Home Buyer

How much can I afford?

Before you start house hunting, you need to make sure you are looking in the right price range. Getting pre-qualified by your Loan Officer will give you a better idea of how much home you can afford based on your current financial situation.

How long do I want to stay in my home?

Think about where you will be in the years to come; whether you want to move again or planning to stay long term. This is an important factor when deciding which type of mortgage is best for you.

What am I looking for in a home?

As you begin to contemplate buying, make a list of the most important things you want in a home. For example: a condo or single family home, monthly mortgage payment, location to work and school zones, neighborhood amenities, and yard size. Not only will this list help your real estate professional find the perfect home, it will also help your Loan Officer tailor a loan program that fits your needs.

Should I consider a second home?

Buying another property as a rental can provide ongoing income from tenants, and a vacation home on the beach or mountains is equally attractive. However, you will need to decide whether the home will be a place to live (primary residence) or a place to rent (investment property). Loan specifications are different based on how you plan to utilize the home. Your Loan Officer can explain the different requirements and help navigate through the process.

Our Process

While buying a home can appear complicated, it is our job to ensure it is as seamless as possible.

The loan process begins with an initial consultation with your Loan Officer. Together, you will outline goals and assess your financial situation. This will provide a better understanding of the mortgage amount you may qualify for. Here’s what you can expect from start to finish.

Prev Step

Next Step

1. Pre-Qualification

2. Making An Offer

3. Mortgage Process

4. Closing

5. Making Payments

The first step toward a home purchase is getting pre-qualified for a loan. Your Loan Officer will review your financial information and determine how much you are qualified to borrow. As a pre-qualified buyer, your offer on a home is more likely to be accepted.

Loan Preparation Checklist

Copy of photo ID
Social Security number
Copies of checking and savings account statements for the past 3 months
Most recent pay stubs detailing your last 30 days of employment
Federal tax returns with W-2s, K-1’s, 1099 for the past 2 years
Evidence of any other assets such as stocks and bonds
Contact name and address of someone who can verify your employment

Since everyone’s situation is unique, additional documentation might be required. Your Loan Officer will let you know exactly what is needed.

Once you have found a home, you will make an offer to buy it from the seller. A real estate professional will conduct negotiations and a contract will be submitted to purchase, accompanied by the pre-approval letter. Once your offer is accepted, you will begin the application process.

When the seller accepts your offer, you begin the mortgage process. Your Loan Officer will gather your financial information, loan application and provide the initial disclosures based on your loan terms.

This process will also include:

Ordering the appraisal; estimating the value of the home
Ordering/updating your credit report
Submitting your loan to Underwriting for review
Conditionally approving your loan (additional documentation might be requested)
Providing information on homeowner’s insurance and selected title company
Underwriting approval on all acceptable documents
Final loan approval – you are cleared to close

Your Loan Officer will keep you informed, answer your questions, and navigate you through the loan process.

In the days leading up to settlement, you will be sent final documentation about your loan, including the Closing Disclosure. You must review, sign and return the paperwork a minimum of three days prior to your scheduled closing date.

Your Loan Officer, or a designated employee, will tell you the amount of money you need to close on your home.

What happens on closing day:

Meet with your settlement agent as well as your Loan Officer, or designated employee.
Provide funds to the title company to cover your down payment, closing costs, taxes, insurance and other costs.
You and the seller will execute all closing documents so the settlement agent can properly record the purchase of your home.

Your settlement documents will include instructions on how to make your first payment. While First Home Mortgage services many of our loans, it is possible servicing will be transferred. You will be mailed a notification that designates your mortgage servicer. If you have any questions, you can always contact 443-725-8938 ext. 1008.

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