Hop on the Path That Leads to Your New Home
Mortgages can seem overwhelming, but we’re here to help you understand each stop on the home buying path—so you can stress less and focus more on your future home.
Hover on each stop below to learn more.
1. Get pre-qualified
After meeting with your realtor, they will advise you to obtain a pre‑qualification from your bank, to determine what you can afford. Call or stop by your bank to speak with a bank representative or apply online.
2. Find your home, negotiate a contract
Once you’ve found the perfect home, you can negotiate your purchase contract with your seller, the seller’s real estate agent or your real estate agent.
4. Select a closing agent
Choose a closing agent or attorney who will make sure all title and deed transfers for your new home are verified. This is the person who will close your loan at the end of the completed mortgage process.
5. Review of your application
Once the bank receives your completed application, the mortgage application process begins. Your bank will review your employment, income, assets, debt, credit report and other applicant information for your loan.
6. Appraisal of property
The bank will call for an appraisal which estimates the value of the property. A copy of the appraisal will be sent your way once the bank approves. This is the time for you to have a home inspection done if you choose to do so. An appraiser and a home inspector look at the property in very different ways.
7. Final review of loan
The bank will review all of the information provided for your application before a final decision is made. This review entails a thorough analysis of your income, credit, cash reserves and the property itself. If applicable, you may be asked to verify some information before the bank makes a final decision.
8. Commitment letter
After the bank has approved your loan, you’ll receive a commitment letter outlining the details of your mortgage. This letter will layout the terms of your loan. Make sure you start shopping for homeowner’s insurance as you’ll need proof of this coverage prior to closing. The policy should be forwarded to your attorney or closing agent no less than one week prior to closing.
9. Closing day!
Your attorney or closing agent will schedule a date for your closing. On this day, it will be their responsibility to provide tax and insurance information on the home, along with a preliminary settlement statement. Get your pens ready because you’ll be signing a variety of necessary documents of which you’ll get copies for your records. Once all paperwork is in order, you’ll be handed the keys to your new home! Congratulations on this significant milestone!