how to buy a house

Is it a good time to buy a house? Fact vs. fiction [INFOGRAPHIC]

Bethany RamosFirst-Time Homebuyer, Getting Prequalified, Home Buying

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how to buy a house
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The highlights:

  • Misconceptions abound in today’s housing market – ranging from current supply levels to the amount a house is selling for.
  • At times like these, it’s important to rely on the professionals, who are well-versed in data and expert insights, to help you separate the fact from the fiction.
  • Trust the professionals in your corner. Reach out to a loan officer now to determine if it’s a good time for you to buy a house, if you haven’t already.

Psst — here’s where you can find a local loan officer who cares.

How to buy a house in 5 simple steps

The homebuying process can look complicated, especially in today’s fast-paced market. But it’s actually pretty straightforward. Whether you’re a first-time or repeat buyer, there’s no need to feel intimidated.

Buying a house can be broken down into five steps:

1. First, you get prequalified.

  • Prequalifying for a mortgage can tell you how much house you can afford so you don’t waste weeks or even months shopping in the wrong price range.
  • Being prequalified also gives you a stronger bargaining chip to use when making an offer; sellers in today’s market may give more preference to a prepared — i.e., prequalified — buyer.
  • Prequalifying is easy to do from virtually anywhere, using an app or online, and it only takes a few minutes.*

2. Then, you start shopping.

  • It’s the moment you’ve been waiting for — the chance to comb through listings and schedule some in-person or virtual tours.
  • Your lender helped you find an estimated mortgage payment you can comfortably afford. Now, your realtor is going to help you get in the door.
  • This is again where prequalification is critical. Once your loan amount has been preapproved, your realtor will be able to show you homes that fit within your price range. 

3. Next, you pick a loan product.

  • You’ve gotten prequalified. But there are still many different types of home loans to choose from with different financing options.
  • You may have been given multiple loan choices during the prequalification process (step 1). But know that some products or programs may be subject to change based on the property you decide to buy.
  • In this step, you’re going to get to know your loan officer a whole lot better as you work together to hand-pick the right loan program to meet your short-term and long-term goals.

4. Now, you get final loan approval.

  • You’ve finally found your dream home, gotten your offer accepted, and made it through the appraisal and inspection in one piece.
  • Before you post that celebratory Facebook status, you’ll still need to get through the final approval process.
  • Your loan officer will collect the rest of your paperwork, including title work, flood certification, and homeowner’s insurance, to give you the seal of approval on your loan.

5. Last but not least, you close on your new home.

  • Hectic as it may be, this is the time to celebrate. On closing day, which is also moving day, you’ll meet with the seller to transfer the property and close the transaction.
  • To make it happen, you’ll need a certified or cashier’s check, made payable to yourself and ready to be endorsed to the title company.
  • Take a moment to review your Closing Disclosure, sign the mortgage note, receive the deed from the seller, and pat yourself on the back. It’s a done deal.

If you want to make buying a house even easier:

We’ve got an app for that. LoanFly can help streamline the process from start to finish — with a great search function for listings and a handy Borrower Portal to help you quickly prequalify and review your loan each step of the way. If you’re ready to buy, your loan officer can help you get the party started, and LoanFly can keep you company until closing day.

*During normal business hours.

This information is meant as a guide and should not be considered as requirements when buying a home. Because each borrower’s individual situation and needs vary, please contact your loan officer before undertaking these and any other actions that may affect your loan transaction.

For educational purposes only. Please contact your qualified professional for specific guidance.

Sources are deemed reliable but not guaranteed.

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