So you want to purchase a home? That's great! Owning a home is very rewarding and is one of the greatest wealth-building activities you can engage in. But where to start?
The first step to purchasing a home is identifying your needs. How many bedrooms and bathrooms do you need, how large of a home, do you need a backyard, what kind of layout? These are all great things to consider that will help you in your search for a home.
From there, you will connect with one of LEGACY Home Loans loan officers to get pre-qualified or preapproved. Sometimes people use these terms interchangeably; however, they are both essentially types of mortgage approvals that helps us determine whether a potential borrower can qualify for a mortgage and at what price point they can afford to buy. With a pre-qualification letter, our loan officer will ask you some basic questions about your finances in order to tell you how much of a home you can afford to purchase. This is typically done without a credit pull or verification of finances provided, so it is important during this process to be as forthcoming as possible about your finances to ensure a seamless loan process and so that you can search for homes at a price point that you’ll have no trouble getting approved. With a pre-approval, our loan officers will actually check your credit and review your bank statements which provides you with a bit more certainty going into your loan process that your loan will get approved. Both of these approvals are great ways to signal to the seller that you are a serious and credible buyer, which may make it easier for you to get your offer accepted.
Next, you should find a real estate agent who can help show you homes and guide you through the home buying process. Obtaining your pre-approval or pre-qualification letter from our loan officers, will first allows you and your real estate agent to begin house hunting at the price point you were pre-approved for. Selecting a reputable real estate agent is important and can make all the difference in your real estate purchasing experience. A good real estate agent should be able to help find a home that fits your lifestyle, negotiate deals and will also have a close, working relationships with our loan officers to help you obtain the best rate.
Once you find a home, your Realtor will draw up contracts, you will likely pay an earnest money deposit and the loan process will begin.
First, your loan will be processed by our loan processor who will gather your documentation in the form of paystubs, bank statements, tax records etc. Once processing is complete, the loan file will go through underwriting to ensure that everything is correct and that the loan is in compliance. After underwriting provides their stamp of approval, it is time for closing where you and the seller will meet to make your transaction official. Upon signing, you will officially be a homeowner!
Are you ready to embark on the journey to homeownership so you can start building sustainable wealth and leaving family Legacies?
