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The Steps to Buying Your First Home: Follow This Path to Homeownership

The Steps to Buying Your First Home: Follow This Path to Homeownership


The Steps to Buying Your First Home: Follow This Path to Homeownership

First time homebuyers may think they are ready to purchase, but it pays to know what you’re getting into. Not preparing in advance can set you up for some nasty surprises. Here are the key steps you should understand to ensure you’re ready to walk the path to homeownership.

Step 1: Connect With A Loan Officer

A knowledgeable, experienced loan officer is essential in making your homeownership dreams a reality. Find one who makes you feel comfortable asking questions, and who is accessible to walk you through the process.

Step 2: Obtain a Pre-Approval Letter

A pre-approval letter shows the seller you’re serious about buying a home. It gives you an edge on other buyers who didn’t have the forethought to secure one. Knowing you already qualified for a mortgage loan may give you additional bargaining power if other buyers are vying for the same house.

Step 3: Select a Real Estate Agent

Some buyers go it on their own, and this is a mistake. Real estate agents can navigate the process and be by your side to make sure you make the right moves. Find one you like and who understands what you’re looking for.

Step 4: Find Your Dream Home

Look in the neighborhoods you like for homes within your budget. This takes knowing which features you must have – and which you can live without. Make a list and narrow down your must-haves so you can be specific with your real estate agent.

Step 5: Make an Offer

If you’ve decided on a home, offer what you think it’s worth, along with your earnest money. Be prepared to bid against other offers and to counteroffer if the buyer doesn’t accept your first one. This process can take several days.

Step 6: Get an Appraisal and a Home Inspection

The seller has accepted your offer. Things are moving along well, but you’re not to the finish line yet. Wait for the appraisal and home inspection before you get too excited about living in the house, since both have a bearing on qualifying for your mortgage.

Step 7: Request Repairs

You might need to go back to the seller to address repair issues found in the home inspection. This may cause another round of negotiations.

Step 8: Get Final Loan Approval

The loan officer can finalize your loan once they have all your information and the appraisal in their possession.

Step 9: Purchase Homeowner’s Insurance

Talk to a couple of insurance companies to get the best quote on insuring your new home. Some give discounts on a house/auto combo.

Step 10: Receive Closing Documents

These are sent three days prior to your closing date. Review them carefully and ask questions on anything you don’t understand.

Closing time is here! Get the keys to your new home! It’s time to take ownership of your new place. Congratulations on being a new homeowner!

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Mortgage Investors Group, based in Tennessee, offers residential financing in a number of states in the southeast, See MIG Service Areas. Terms and conditions to apply to home financing. We want to share with you the loan terms vary based on several characteristics and your financial profile. These include but are not limited to loan program, loan purpose, occupancy, credit history, credit score, assets, and other criteria per loan type. The repayment terms and interest rate may vary from time to time. The terms represented here are based on certain assumptions outlined below and/or noted on the loan outline page. Additional details concerning privacy, program disclosures, licensing specifics may be found at migonline.com Legal Information.

MIG Loan Officers will help gather the information needed for an individual assessment to provide home financing which matches the loan characteristics with your home financing needs based on your financial profile, when you are ready to begin a full loan application. For estimates and general information before that step, the basis for which the mortgage financing information are as follows:

  • Rates are subject to change at any time.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Rate locks are available at current terms for 30 to 180 days based on program type, credit profile, property location, etc. which will affect the available rate and term.
  • Payments will vary based on program selection, current rates, property location, etc.
  • Not all programs are available in all states.
  • Some loan programs may not be available to first time home buyers.
  • Terms and conditions apply, which may include restrictions or limits per loan program.
  • Information is generally based on primary residence occupancy with no cash out when refinancing.
  • Unless otherwise stated, terms shown are estimates based in part on credit score of 700 or higher; owner occupancy, escrow account is established for taxes and insurance(s); debt-to-income ratio no higher than 43.0%; PMI applies to conventional loan programs over 80.0% LTV; VA,FHA & RD require insuring fees included in loan and/or payment; fixed rate, 30 year term.

An MIG Loan Officer is available to help with your financial details to determine which characteristics apply to your situation for a personalized look into which loan program best fits your home financing needs. Please use the Find a Loan Officer link or reach out to Mortgage Investors Group at 800-489-8910. Equal Housing Lender 1.2020