Amerifirst blog

Explore our blog for insights on buying, financing, remodeling, and taking care of your home.

Back to all posts

How To Buy A Home In Eight Steps

Blog-9

Buying a house requires time, energy and patience. However, preparation and education can make the path to homeownership a lot easier to navigate. Follow our eight steps to make your journey almost as easy as a walk in the park!


1. Get Pre-Approved:

 

Getting pre-approved is a crucial first step in the homebuying process. It shows your seller that you are serious about purchasing their home, and gives you a distinct advantage in this competitive market.

  • Choose an experienced mortgage lender
  • Provide paperwork documenting your income, assets, employment history, etc.
  • Lender determines how much house you can afford and best financing options

2. Go House Shopping:

This is everyone's favorite step. Make sure to find one that fits your budget and compliments your unique personality.

  • Contact a trusted real estate agent
  • Choose a house
  • Make an offer; agent oversees negotiations

BAHI8S3

3. Document Collection:

It's not the most exciting step, but it's certainly necessary. Your loan officer will tell you which documents you need in order for them to be able to get you the loan for your future home.

  • Sign initial application with lender

4. Submit Loan Application:

After your loan officer has all of the documents they need, you will be able to fill out an official application, which will solidify the amount you can borrow to buy your home.

  • Appraisal is ordered
  • Title report is ordered
  • Get quote for Homeowner’s insurance
  • Your loan package sent to Underwriting Dept.

BAHI8S4

5. Conditional Approval:

To make sure that all of the i's are dotted and the t's are crossed, your loan officer may need some additional documentation.

  • Additional documentation may be required
  • Approval within 48 hours of complete loan package submission
  • Closing date/time scheduled

6. Clear to Close:

In our industry, these are our three favorite words. Once you are clear to close, you are just days away from signing one of the most important documents in your life - the deed to your new home!

  • Underwriting Dept. performs final review
  • Approval is given to close the loan
  • Closing Department works on closing package
  • Final Settlement Statement available for your review

BAHI8S5

7. Closing Day:

Today is the day! All of the hard work that you, your loan officer and your real estate agent have done has paid off, and you are just a few signatures away from officially owning your dream home.

  • You and seller sign closing paperwork with title company agent
  • Title company records final Deed of Trust

8. Celebrate:

Who doesn't love this step? It's the end of a journey that started with a dream. What's not to celebrate?

  • Break out the bubbly! You’re a homeowner!

Are you ready to start your path to homeownership? If so, click here to find the loan officer nearest you!
 

Janet Veach
Janet Veach
Janet Veach is the Communications Specialist for Amerifirst Home Mortgage. As the former Communications Director with the Alzheimer’s Association in Central Illinois, she believes that building strong relationships leads to dynamic partnerships that can dramatically improve our neighborhoods and communities. The mother of three sons, she has heard many a good story, and specializes in creating content that educates, communicates our core values and promotes genuine relationships with our customers.

Related Posts

Home Maintenance Tips for Winter

Sure, spring cleaning sounds great.  However, in reality, tackling a long home maintenance checklist all at once can be overwhelming. Rather than letting it all add up, what if you tackled home maintenance a little each season? Here are some ideas for taking care of your home during the winter months.

Tips for Paying Off Your Mortgage Faster

There are several ways to pay off your mortgage faster and save on interest payments. Even better, not all methods require spending a lot of extra money! Take a look at the list below: Make extra principal payments.  You can pay extra money toward your mortgage balance each month or make a larger, lump sum payment on your principal each year. This reduces the amount due on the mortgage as well as reducing the amount of interest that will accrue. Extra money can also be added to the principal payment from bonuses, gifts, savings and extra earnings. Just remember to make a note on the check for the money to go towards the principal! Make one extra mortgage payment per year. One of the easiest ways to make an extra payment each year is to pay half your mortgage payment every other week instead of paying the full amount once a month, otherwise known as “bi-weekly payments.” With these payments, an extra payment is made so that the total number of payments that one makes adds up to 13 payments in a year rather than the 12 that would have been made with monthly payments. This adds up to significant interest savings over the duration of a mortgage. You also want to make sure that if your lender accepts this kind of payment they will not charge you a prepayment penalty. Also verify that the bi-weekly payments are being applied to the principal amount and not the interest. Otherwise, you won't notice the savings. Reduce your balance with a lump-sum payment. Have you inherited money, earned a bonus or commission, or sold a large item? You could apply that amount to your mortgage’s principal balance. Another option is any time you have a month where you have that third paycheck, apply that to the principal on your mortgage. This will happen twice a year, adding an extra principal payment to your mortgage loan. While paying down a large debt is nice, it's not a requirement. Consider making sure you have enough to work toward other financial goals, such as an emergency fund, before paying more on your mortgage. However, there are many options you can explore that best fit your budget. You can learn more about buying your first home with our Get Mortgage Ready Guide below.

Mortgage Interest Rates Up - Is It Still a Good Time to Buy?

You've seen the headlines and heard the chatter - mortgage interest rates have gone up. How long will this last? Will this be a return to renting for people who were thinking of buying a home? Or is it just a small adjustment in the overall scheme of things? 

icon_footer_phone-01

Call us

800.466.5626

icon_footer_laptop-01

Get started

Apply online today